How to set up and send reminders in Business Central

Reminder terms and levels come first in Business Central

Open the Reminder Terms page and create a code for each collection policy you run. You might have one for ordinary trade accounts and one for key accounts that you chase more gently. Each code holds the rules for posting interest and additional fees. It also holds the smallest overdue amount that is worth writing to a customer about.

Under each code, the Reminder Levels page defines the steps. Every level has a grace period, a due date calculation for the reminder itself and an optional additional fee. It also has its own beginning and ending text. Once a customer has passed the last level, that level keeps repeating.

Assign the terms on the customer card

A customer only receives reminders when the Reminder Terms Code field on the Customer Card has a value. You find it on the Payments FastTab, next to the Fin. Charge Terms Code. Leave it blank for customers you never want to chase this way.

Before the first run, open the Customer Posting Groups page and fill in the accounts for additional fees and interest. Otherwise issuing a reminder that carries a fee stops with a posting error. Put the code on your customer templates too, so new accounts get it.

Create and check reminders in Business Central

On the Reminders page, choose the Create Reminders action. The batch job asks for a posting date and a document date. Then it looks at every open customer ledger entry. It compares the due date plus the grace period with the document date, and it builds one draft reminder for each customer.

Nothing has gone out at this point. Open a draft and you see one line for each overdue entry, the level it has reached and any fee line. You can delete a line or the whole draft. The run leaves out entries with a value in the On Hold field.

Issue, print and email reminders in Business Central

When the drafts look right, select them and choose Issue. Business Central turns each draft into an issued reminder. It posts any fee or interest to the customer ledger when the terms say so. In the same step, you can print the document or send it by email.

Issuing also writes reminder entries that record which level each invoice has reached. The next run reads those entries. So the same invoice moves from level one to level two, and nobody tracks it by hand. The Issued Reminders page keeps the history for later.

Automating reminders in Business Central: what to check

Current versions include reminder automation. You define a group of actions that create, issue and send reminders, each with its own filters. Then you run the group on a schedule through the job queue. Start with the create step alone, and look at the drafts before you add more.

Most wrong reminders come from the ledger, not from the terms. A payment or credit memo that someone posted but never applied leaves the invoice open. Then the customer gets chased for money they already paid. So apply entries before every run, and put disputed invoices on hold. Be careful when you pick the document date.

Questions about reminders in Business Central

What is the difference between reminders in Business Central and a finance charge memo?

A reminder tells the customer that invoices are overdue, and it can carry a fee and interest. A finance charge memo exists only to bill interest on overdue balances, and it follows the finance charge terms. Many companies use reminders alone. They keep finance charge memos for formal interest billing.

Why is a customer missing from the Create Reminders run?

The usual causes are a blank Reminder Terms Code on the customer card and a grace period that has not yet passed for the document date you entered. Entries on hold also drop out. So does an overdue amount below the minimum on the reminder terms. Check each one in that order.

Can we send reminders without charging a fee?

Yes. Leave the additional fee empty on the reminder levels and switch off interest on the terms. The reminder then works as a plain statement of overdue invoices. You can also add a fee only from a later level. That keeps the first letter friendly and gives customers time to pay.

How do we stop a reminder for a disputed invoice?

Open the customer ledger entry and enter a short code in the On Hold field. The create run skips that entry until you clear the field. It still includes the rest of the customer's overdue invoices. So one dispute does not pause collection.

Can each reminder level have different wording?

Yes. Every level carries its own beginning and ending text. The text can use placeholders for values such as the total amount and the due date. So a first notice and a final notice can read quite differently, and you control the tone at each step.

Related receivables topics

Reminders in Business Central sit at the end of the receivables process. These pages cover the setup around them. They explain the customer ledger, credit limits, collection routines and the journals that record the money when it arrives. Read them together if you want a full collections routine. Our consultants can look at your current terms and customer data with you, and set up reminders that your team can run without chasing money that someone already paid. For the product detail, see Collect outstanding balances, on Microsoft Learn.