Statements and Aging - The Edge

WHAT IT IS

House account management that includes functionality to support aging of accounts starting with Edge version 6.1.

WHAT IT DOES

The Edge can automatically calculate and assess finance charges and minimum payments and include them on the printed statement.
In addition, with each closed period, the statement balances are aged to provide collection reporting for 30, 60, 90 days, and beyond. Only “Store Charge,” aka “House Account,” balances are processed for interest and aging.
The Edge allows you to generate statements that include interest. First you should close the billing period, then generate the statements to be mailed. These processes are described in later articles in this series.
A few notes:

If this is the first time you have used The Edge for statements since upgrading to v. 6.1 or higher, see the section entitled Using Statements the First Time Using Versions 6.1 and Higher before beginning ANY statement work.
Statements and Aging must be managed from the headquarters store
Federal Regulation:
Consumer credit is governed by federal regulation “Title 12: Banks and Banking, PART 1026—TRUTH IN LENDING (REGULATION Z)” which applies to retailers who meet both of these criteria:

The offering or extension of credit is done regularly; and
The credit is subject to a finance charge or is payable by a written agreement in more than four installments.
If you meet both of these criteria, then you must comply with several specific requirements that The Edge does not yet satisfy.
We cannot support this for retailers who meet both of these criteria.

HOW IT WORKS

Using statements the first time (ver. 6.1 and higher):
The first time you use the Aging feature, which would be the first time you close a period or run statements after upgrading to any version of The Edge starting with v. 6.1, The Edge will accurately pull the amount due and will make the best attempt to determine whether the amounts are aged (e.g., 30, 60, 90 days past due.)
You must verify or adjust this aging one time per customer. You may wish to run the Customer Balances report before performing this task to prepare you for this reconciliation.

From the Customer menu, select Statements → Print or Statements → Close. The Close Period window will appear.
Change the dates as needed and click OK. You will be prompted to confirm that you want to proceed with aging activities.
If you choose No, you will be exited from the function. If you choose Yes, The Edge will close the current and all previous periods, begin processing statement data, and generate a Statement List. This process may take considerable time (possibly hours), so be prepared, or run this off-peak.
Locate the record you wish to edit and open it. Note that for any customer, only the most recent statement will be editable.

Customer: Name of the customer whose record is being adjusted.
Closed Date: The closing period end date of the record.
Min. Aging Breakdown Current: Amount due on the account for current period.
1-30 Days: Amount up to 30 days past due.
31-60 Days: Amount 31-60 days past due.
61-90 Days: Amount 61-90 days past due.
Over 90 Days: Amount over 90 days past due.
Min. Due: Based on System Options, the amount due, usually incl. All overdue balances plus the Current Due.
Total Balance: Total balance on this account.
Estimate: Whether the amounts shown are estimated by The Edge based on previous statements. If you alter the amounts above, this field will be cleared on the assumption that you have made all desired adjustments.

Make changes to the statement record and save. Amounts shown under the Aging Breakdown should add up to equal the Minimum Due. If you agree with the aging shown, uncheck the Estimate option. Once adjustments are made or the Estimate option is unchecked and you click Save, you CANNOT undo this action.
Repeat for as many records as necessary.
Note that if the account balance on the most recent statement is $0.00 or a negative value (in which a credit is owed to the customer), no action is required at this time.
After all adjustments are made, you can proceed with printing statements.

EXPAND YOUR EDGE EDUCATION

For more information on how Aging & Statements work within The Edge, plus a tip sheet and tutorial video, click the button or visit EdgeUser.com and search Aging & Statements. Then check out the rest of the site for more features and additional tools that can help your business become the best.