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Revolving Account

Once turned on within System | Company Setup | Accounts Receivable 1, Revolving Account is best described like a credit card. On a credit card, you have a minimum payment. You are only obligated to pay this monthly payment every month. You don't have to pay the balance every time you pay. Interest accrues every month, but the amount that hits changes every month, depending on the balance left. If a payment is late, a late fee is charged to the customer's account and tacked on to the balance of the account.
 
To setup a Revolving Account (once turned on in the Company Setup), you must create a terms for a Revolving Account. To do this, go to System | Support Files | Customer Terms and click New to create a new terms. Clicking the drop down menu will reveal Revolving Account as an option. Click this and enter in a description, payment due date, and late fee amount.
 
 
When you are finished, click OK and you are ready to assign a customer with the terms "Revolving Account." Go into a customer's file by clicking AR | Customer File and find the customer you wish to change. If you want to create a new customer, click F4 - New Customer. If you are editing an existing customer, you change their terms in the Accounting Tab. Clicking edit will allow you to click the drop down beside Terms and choose the Revolving Account terms you created earlier.
 
 
If you are creating a new customer and are using the wizard, when you get to the Terms Information screen, click on the drop down for Terms and select the terms created earlier.
 
Once you have done this, the customer will have a Revolving Account. Now, when you go to the customer's file and click on the Accounting Tab, you can edit the Revolving Account fields. Here, you will set the minimum payment and, if the account has been prepaid, what date the prepayment is applied.