Credits
Credits can be known as Suspended Pallets or Excess. You can view your credits by going to Credits under Data in the main menu. You should pay particular note of the "Days Until Lost" column. Once this figure goes negative you need to contact CHEP or Loscam to recover the equipment from credit. You can also print out a report of credit movements by clicking on the Credit Balance Report which can be found under Data\Credits.
CHEP
CHEP will not allow an account to have a negative closing balance. If an account balance goes below 0 CHEP will move the excess equipment into credit. As transactions are processed equipment will move in and out of credit automatically for 90 days. After 90 days this automatic function switches off and equipment could be lost if you do not contact CHEP. CHEP credit transactions will automatically appear on the Credits screen. When a movement From Credit appears you need to click in the "Credit Date" field. This will open a form where you can enter the credit date. This date can be found on your CHEP PDF invoice and should match up with one of the To Credit transactions.
Loscam
Loscam will allow your closing balance to go negative but can remove the negative quantity. This can be after 90 days or it can be on the next invoice if the negative balance quantity increases. Movements to credit will appear on the Loscam PDF invoice as "To Loscam". Movements returned from credit can appear anywhere on the invoice. If you have Loscam credits you need to create a new credit in PalletWatch as pallets to credit transactions are not sent by Loscam in import files. Ensure that you tick the "Is to Credit" Checkbox for equipment going into credit.
Credits Before PalletWatch
You may need to enter equipment going in to Credit from invoices before PalletWatch. This is so you can match them up with credits from Credit which appear on invoices after PalletWatch commenced. You can do this by entering a credit as normal but leave the Invoice Date field blank.
Writing Off Credits
There may be times where equipment will not be returned from Credit and you no longer want the equipment in credit to display in the Credit Report. To do this edit the credit and tick the "Written Off" checkbox.
You can also click on the "Create new Credit button and enter an opposite credit. You should use the same Reference No., Invoice, Credit Date and ensure that the "Written Off" checkbox is unticked.
Avoiding Credits
Every effort should be made to avoid credits. If your account is at risk of going into credit, i.e. the closing balance will be less than 0, then you should monitor balances in MyCHEP and in Loscam Online. This is particularly important towards the end of the invoice period. Some actions that can be take are:
- Review transfer ons. If the sending trading partner is not getting their dockets processed in a timely manner ask them to export to Loscam more frequently.
- Review transfer on delays. If the transfer on delay is high then consider reducing the number of delay days. Be aware that this could result in increased costs so exercise caution.
- Delay dehires.
- Delay exporting transfer offs.
- At the end of the month add some delay days to your transfer offs. This will only be effective with Loscam transfers.
- Review the uninvoiced transfer ons and contact some of the relevant trading partners. If the transfers are old then you should minimise costs by getting them processed at a current date but before the invoice date if the account is at risk of going into credit.
- Get one of your associated accounts to raise a transfer on.