Risk limits specified on AR/AP records and closed risk amounts can be adjusted in batch. To do so, the AR/AP Risk Adjustments option located in the Operations menu of the Finance section is used.
AR/AP risk adjustments are performed by conditions specified in filter lines. Risk adjustments are performed by the selection made on the Risk Control parameter considering charge account, check/p. note, dispatch/receipt and/or orders. Risk totals to be updated are provided by the user.
Adjustments for new risk limits and closed risk limits can be performed through a fixed value, or the limit can be given as a risk factor or rate increase. The following filter options are used to specify the risk adjustment conditions:
Risk Tracking: This filter line is used to specify the currency to be used for risk tracking. The field contains the following options:
- Local Currency
- Reporting Currency
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Risk Control: The filter option used to specify the AR/AP transactions to be adjusted according to the risk control method. The risk control option indicates the transactions to be used for the calculation of the total risk amount of the AR/AP. The specified amount is used in risk control transactions. The risk control filter line contains the following options:
- Charge Account
- Company Check/P. Notes
- Customer Check/P. Notes
- Company Endorsement Check / P. Notes
- Dispatch/Receipt
- Dispatch/Receipt (Proposal)
- Order (Deliverable)
- Order (Proposal)
Charge Account option displays the amount of all transactions except order, dispatch/receipt, customer/company check/p. note transactions that debit or credit the AR/AP. When Charge Account is selected, the risk total includes only the transactions (except order, dispatch/receipt, customer/company check/p. note transactions) that generate balance.
When Company Check/P. Notes is selected, the risk total includes the check/p. notes belonging to the company.
When Customer Check/P. Notes is selected, the risk total includes the check/p. notes belonging to the customers.
When Company Endorsement Check/P. Notes is selected, the risk total includes the check / p. notes that customer endorsed to our company.
When Dispatch/Receipt option is selected, totals of the unbilled dispatches are processed.
When Dispatch/Receipt (Proposal) option is selected, the risk total includes quantities dispatches / receipts that are in "Proposal" status.
When Order (Deliverable) option is selected, quantities of approved, deliverable orders are processed.
When Order (Proposal) is selected, the risk total includes quantities of unapproved orders that are in "Proposal" status.
The option that will not be adjusted can be unchecked by clicking.
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New Risk Limit: This filter line is used to specify the adjustment method. This field contains the following options:
- Fixed Value
- Factor
- Increase
When Fixed Value is selected, the new risk limit is entered as an amount. The amount to be applied is specified on the Fixed Risk Limit Value filter line.
When Factor is selected, the new risk limit is adjusted by entering a factor. The factor value to be applied for the adjustment is entered into the Risk Limit Factor filter line. The adjustment is based on the previous risk limit values of the AR/AP, and the new risk limit is calculated using the risk limit factor value.
When Increase is selected, the adjustment value is entered as an amount. The amount of increase to be applied is specified on the Increase in Risk Limit filter line. The adjustment is based on the previous risk limit values of the AR/AP, and the new risk limit is calculated using the increase in risk limit value.
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New Closed Risk: The AR/AP risk adjustments transaction can be used to adjust closed risk information in batch, along with the risk limits. The adjustment method for closed limits is specified on the New Closed Risk filter. This field contains the following options:
- Fixed Value
- Factor
- Increase
When Fixed Value is selected, the new closed risk is entered as an amount. The amount to be applied is specified on the Fixed Risk Limit Value filter line.
When Factor is selected, the new closed risk is adjusted by entering a factor. The factor value to be applied for the adjustment is entered into the Closed Risk Factor filter line. The adjustment is based on the previous risk limit values of the AR/AP, and the new risk limit is calculated using the risk limit factor value.
When Increase is selected, the adjustment value is entered as an amount. The amount of increase to be applied is specified on the Increase in Risk Limit filter line. The adjustment is based on the previous risk limit values of the AR/AP, and the new risk limit is calculated using the increase in risk limit value.
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Rounding Base: The filter line used to specify the rounding base to be used if the amounts result decimal after the adjustment.
Once the adjustment conditions are set on the filter lines, the adjustment transaction is started.
New values calculated according to the selection made on the New Risk Limit and New Closed Risk filter lines are transferred into the AR/AP records.