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How Forward Charging Works

The Forward Charging option on customer statements changes the statement to show the current balance owing plus the estimated charge for the number of weeks specified.

Retailer calculates this amount is by multiplying the regular weekly charge for the customer by the number of weeks selected. The calculation will also take into account any stops and starts within that period.

Before Implementing Forward Charging

Some preparation work is needed before commencing forward charging:

  • You may need to obtain approval to use forward charging from your area manager
  • Determine how many weeks you wish to forward charge.
  • Consider how you will manage the transition to forward charging.
  • Ensure your staff understand the change and can explain it to customers.

Setting Up Forward Charging

Setting up forward charging is a 2 step process:

  1. Create a new statement type for forward charging.
  2. Assign customers to use the forward charging statement type.

Creating a Forward Charging Statement Type

  1. On the top menu bar of Retailer, click on Setup -> Customer.
  2. In the Statement Types screen, click on Add.
  3. Type in a Description for the statement type such as Forward Charging.
  4. Select any options that you require. Click HERE to learn more about the options.
  5. Tick the Use Forward Charging? tick-box.
  6. In Number of Weeks, enter in the number of weeks to charge forward.
  7. Click Save.

Assigning Customers to the Forward Charging Statement Type

  1. From the main screen of Retailer, click on Customers.
  2. Click on the magnifying glass icon and search for a particular customer who you want to forward charge.
  3. On the bottom-left, click on the Other tab.
  4. In Statement, select the forward charging statement type from the drop-down box.
  5. Click Save.

Managing Forward Charging

The first month that forward charged statements are used may cause adverse reactions from some customers, so your staff will need to be well briefed on how to handle this to minimise any loss of customers.

To smooth the transition it is possible to start with a forward charge of just 1 week, increasing this by an additional week each month until the full required forward charge period has been reached.

GST on Forward Charged Statements

A fundamental concept in Customer Statements is that a statement always runs from the last statement a customer received through to now. When forward  charging statements, they still run from the last statement received, and go through until the end date of the forward charging period. This means that the GST calculated includes the period from the last statement until the end of the forward charging period (see diagram below for assistance).

As the forward charge amount is a guide only, it is important for your customers to be shown the GST on transactions completed in a forward charged period.
When a forward charged statement finishes, and another one is begun, it runs from the last statement printed (the date that the previous forward charged statement was done) until the end date of the new forward charging period.