Share This Post

NAV Updates

Set Up and Assign Reminder Terms in NAV: Part-1

Reminder terms specify when and how reminders are created in Microsoft Dynamics NAV. As soon as the remainder terms are created, the Reminder Term Code is assigned to the relevant customers.

A reminder term contains different reminder levels and determines how many reminders are sent to a customer. Each level will determine when and how the reminder is created. The first reminder for the invoice will have a different look than the 2nd and 3rd reminder

For example, a Reminder Term Code can be set up with three reminder levels and it can have no more than five reminders.

  • In Microsoft Dynamics NAV, a given overdue invoice can appear on no more than five reminders. The first reminder will be created according to the conditions set up on level 1, the second on level 2, and the rest on level 3. This means that the 3rd, 4th and 5th reminder will look the same.
  • As soon as one of the overdue invoices appears on the 5 reminders, all the reminders to the customer are blocked until that particular invoice is paid. Even if the customer has the other overdue invoices that have not yet reached the maximum, additional reminders cannot be made. Typically, this is when a company hands over the customer dossier to a layer or another external collection company that will handle the collection of all overdue invoices. By doing this, the company no longer has to keep sending the reminders to that the customer.

Reminder Terms

To access Reminder Terms page, follow these steps.

  1. On the navigation pane, click Departments.
  2. Click Administration, and then click Application Setup.
  3. On the Application Setup page, click to the Financial Management > Finance > Reminder Terms.
    Reminder terms

    Reminder terms

The Reminder Terms page contains the fields given in the below table.

Field Description
Code Unique identifier of the reminder.
Description Short description of the reminder.
Max. No. of Reminders Identifies the maximum number of the reminders that can be created for the invoice
Post Interest If this check box is selected, any interest listed on the remainder will be posted to the G/L and customer accounts when the reminder is issued. The interest becomes an open customer ledger entry. Then the reminder can be made, and the interest can be calculated when an entry becomes overdue.
Post Additional Fee If this check box is selected, any additional fee listed on the remainder will be posted to the G/L and customer accounts when the reminder is issued. The additional the fee becomes the open customer ledger entry. The remainder can be made when the entry becomes overdue.
Minimum Amount Identifies the minimum amount that must be owed before a reminder is created.

Reminder Levels

To access Reminder Levels page, follow these steps.

  1. On the Reminder Terms page, select a remainder term.
  2. On the Home tab, click to the Levels, to see the reminder levels of the selected reminder term.
    Reminder Levels

    Reminder Levels

    The Reminder Levels page contains the fields displayed in the below table.

Field Description
No. Identifies the level of the selected Reminder Term. The next consecutive number is automatically generated when the new level is included. Level 1 is the first reminder that is sent for the overdue amount. Level 2 is the second reminder, and so on.

  •    When reminders are created, the Microsoft MS Dynamics NAV 2013 keeps track of how many reminders are created and uses the current level number to determine which conditions apply.
  • · When the reminder is issued on the last level, the terms of this level apply to any succeeding reminders that are made.
Grace Period Mentions the time that must pass from the due date of the original overdue invoice or from the due date of the previously issued reminder before the reminder is created.

  • The 1st reminder will be created if the document date on the reminder header is after the due date of the open customer ledger entry. This represents the outstanding overdue invoice, plus the grace period for the 1st level.
  •  Any succeeding reminders are made if the document date is after the due date of the last issued reminder plus a grace period.
Due Date Calculation Indicates the date formula used to determine how the due date is calculated on the reminder. The due date is calculated from a document date
Calculate Interest If this check box is selected, interest is calculated on the reminder lines and is displayed on the reminder. Interest is calculated based on Finance Charge Terms Code chose on the customer card.

Note: For more data, refer to the Calculate Interest on Reminders lesson.

Additional Fee (LCY) Identifies the amount of the additional fee in the LCY that will be displayed on the reminder.

Note: Additional fees can be entered in another currency. This will be explained in Reminders and Currency topic.”

The below table shows how grace periods and due date calculations are used on an invoice due January 29 (01/29).

Rem. Level Invoice Due Date /

Prior Reminder Due Date

Grace Period in Rem. Terms First Possible Document Date of Reminder Due Date Calc. in Rem. Terms Reminder Due Date
1 01/29 3D 02/02 5D 02/07
2 02/07 5D 02/13 1W 02/20
3 02/20 5D 02/26 2D 02/28

The first reminder can be made on February, 2 because an invoice is due on January, 29. Including 2 days brings the date to February, 1. This is still part of the grace period that must be completely passed before the reminder can be made.

Note: February 2 is the first date the reminder can be made. The user will determine when he or she can create the reminder. When the user can create the reminder on February 5, this date will be document date of the reminder and the reminder due date will be February 10, and so on.

The next part of the article is described here:

Share This Post

Leave a Reply

Notify of
Skip to toolbar