Account agreements

Account Agreements are generally used in Business to Business environments, where the customer has an Account or Credit Limit or where you have an Account with a Supplier.

The following information is held against an Account Agreement:

  • Default Price List
  • Default Currency
  • Credit Limit
  • Stop Status
  • Settlement Terms

It is possible to store multiple agreements against a customer / supplier, however only one agreement can be "live" at any time. Normally a single "Rolling Agreement" would be in place. It is also possible to create "Parent Address Agreements". A Parent agreement will allow all invoices raised for a particular customer, to be posted to the customers Parent address. Therefore debt chasing etc is done against the parent rather than the child.

As standard, the system is created with a single Vat Inclusive price list. It is possible to create and maintain multiple price lists or to set the default price list to be Vat Exclusive, however this would require a change request.

In a simple Business to Business environment, whereby Trade customers pay the Retail Price or a Discounted variation on the Retail Price List, the Account Agreement can be set to ensure that any invoices raised on the system show a Vat Exclusive Price.

The Credit Limit entered against an Account Agreement is used by the Sales Order Processing Workflow, to ensure that customers who exceed their Credit Limits have their orders placed on Hold. A Held order would be automatically processed to the "Held For Credit" stage.

Where an account is deemed to be in dispute, the user can assign a Stop Status. This will automatically hold any outstanding orders on the system for the specific customer. Once the Stop Status is removed, the orders will be automatically released.

Settlement Terms allow the system to determine the Due Date of a trade invoice. Where as most Retail orders are sold on a Cash With Order basis, settlement terms such as 30 Day, 60 Day etc can be created and assigned to an account agreement. By doing so, whenever an invoice is raised, the system will automatically calculate a due date, which is then used by the Credit Control, Aged Debtors, Aged Creditors area of the system.