Open Account Transition Frequently Asked Questions

Transcription

1 Open Account Transition Frequently Asked Questions Overview Q: What is the change? A. All of your Red Iron financing (inventory floor plan, parts invoices and miscellaneous debits and credits) will be handled on one system (DAS). Any open account balances will be transferred from the current system (SAP) to the Red Iron System (DAS) on the date of conversion and all future open account transactions will be handled through DAS. Q. Why is Red Iron moving open account to DAS? A. It has been our intention to combine the systems from the inception of Red Iron in order to provide you with a single source for managing your Red Iron accounts. Red Iron has spent the last several years making enhancements to the system in preparation and are ready for conversion. Q. What specifically will be moving to DAS? A. Your open account transactions cover all invoices for parts, as well as other non-inventory (miscellaneous) credits and debits. These non-inventory transactions include credits for rebates, warranty and other miscellaneous billings. Q. What is the conversion date? A. We will be conducting the conversion from the Toro system (SAP) to the Red Iron system (DAS) during the first week of October. Your first new monthly statement will be reflected on DAS at the end of October Billing Statements Q. Will there be a difference in my billing statement? A. Yes, your billing statement will change from the statement currently issued by SAP. Open account billings will be merged with your floor plan statements and you will now receive one statement for both your floor plan and your open account activity. Q. When will I receive my first parts statement from Red Iron? A. The first billing statement from DAS containing both open account and floor plan will be generated as of October month-end. Page 1 of 5

2 Q. Will I still be sent a hard copy of a monthly statement for my open account as I do today? A. No, the SAP statements that are currently mailed or faxed to you will be discontinued as of September 30. Your statements for both inventory and open account will be available on-line via DAS in October. Q. Where can I find the online statements and how will I know they are ready for viewing? A. There will be two different ways that you will know that your online billing statements are ready for viewing. The first is an auto notification from the system that your statement is ready and how to get to it from your dashboard in DAS. The second way will be a banner notification in DAS. When you log in to DAS you will see a notification that your billing statement is available for review. You can get to the statement from your dashboard by clicking on the link in the Outstanding Charges section labeled Monthly Billing Statement. The link will take you directly to your monthly statement. Q. Will I have separate billing statements for my parts and inventory? A. No it will be on one billing statement, but the statement is broken down between pay as sold and scheduled pay activity. As they are today, inventory floor plan items are contained under the Pay as Sold category, open account activity will be reflected under the Scheduled Pay section of your billing statement. Billing Documents: Q. Can I still get copies of my invoices and credits? A. There will be no change to how you currently receive your invoices from Toro or Exmark based on this consolidation. Access to parts invoice data through the dealer portal or OMS will remain the same. Q. What is the change with billing documents? A. While there will be no change to how you receive invoices from Toro or Exmark, a benefit of consolidating the open account is that you will now be able to view, print or download details of your parts invoices, rebate/warranty debits and credits directly from the DAS system. The same detail that is shown on the current documents today will be available on-line through DAS. Q. When will copies of my open account invoices and credits be available for viewing or printing? A. Once the conversion is complete, all invoice, credit and debit documents issued after the conversion date will be available for viewing and/or printing on DAS the same day they appear on your account. Balances open on your open account prior to the conversion will be transferred to the new system but the related documents will not be available for viewing on DAS. Q. How do I find the documents to view/print on DAS? A. You can find copies of your open account invoices, debit and credit memos via the Link to Customer Portal link found on your DAS landing page or from your dashboard. Page 2 of 5

3 Payment for Open Account Credits: Q. Can I still get a check for credits on my account? A. No, paper checks will be discontinued after 9/30/13. Q. How do I get paid for or use my open account credits on DAS? A. Dealers will have two options to utilize your non-inventory credits on your DAS account: 1. You may elect to manually or automatically apply your credits toward current or future amounts owing to Red Iron, or 2. Customers in good standing with Red Iron can utilize ACH to have your credits directly deposited to your bank account on a daily basis. Q. Will I be able to apply my credits on-line? A. Yes, you will be able to manage your account on-line via Red Iron s Dealer Access System DAS. Q. Will I be able to apply my warranty and rebate credits to amounts I owe for wholegoods? A. Yes. All unapplied credits are available and can be used towards wholegoods and/or parts invoices. Q. How do I get credits automatically deposited in to my bank account? A. In order to receive payment for credits, you will need to complete a Bank Authorization Form that will allow Red Iron to send you funds via the Automated Clearing House (ACH). This will be the only payment method available. You will find a copy of the authorization form attached. If you are not currently utilizing ACH, please complete the form and return to your Red Iron account manager. Q. What if I do not want to give you my bank account information? A. If banking information is not provided, credit memos can be utilized on-line to offset amounts owing to Red Iron. This will be the only means of utilizing open credits. You must notify your Red Iron account manager of your choice and your account manager will assist you with setting up this option. Payments/Discounts: Q. When will I need to start paying Red Iron for my parts through DAS? A. You can start paying Red Iron for your parts account immediately beginning October 1, Q. Will I be able to pay my parts account on-line? A. Yes, you will be able to pay parts on-line the same way you currently make floor plan payments today. Q. Can we still use fax check? A. No. Red Iron can no longer accept fax checks. ACH is the preferred method of payment for all transactions. Page 3 of 5

4 Q. Can I still pay by check? A. Yes, you can still pay by check, but it is advisable to utilize ACH for prompt payment application. Q. What about cash discounts, will they still be available? A. Yes. Discount eligibility is based on the effective date of your payment. It is important to understand the effective date relative to your payment to ensure that you qualify for your discounts. Q. What is the effective date of payment? A. The effective date of payment is governed by your loan documents with Red Iron, but generally ACH payments have an effective date the next business day following receipt by Red Iron, and check payments have an effective date 3 business days following receipt by Red Iron. If any payment is received on a non-business day, the effective date will be the next business day, and payments must be received by Red Iron by 2 p.m. or the payment will be deemed received on the next business day. Q. Will I be able to see any applicable payment discounts in the system? A. Yes, you will be able to see any applicable terms of sale discounts in Red Iron's Dealer On-line System - DAS. They are referred to as Early Payment Discounts (EPD) in DAS. Red Iron will be providing various training opportunities for you to learn where to view your discounts and how to make your payments. Q. How will I handle payments if I have both floor plan and a scheduled pay account? A. Your floor plan and open account/scheduled pay items can be viewed and paid separately if you choose. There is a feature in the Dealer Access System (DAS), that allows you to view only your interest due on your inventory/pay as sold or late charges due on your parts/scheduled payment program or all payments due if you would rather see them combined. From there you will be able to initiate your payment accordingly in DAS. Q. Where will I send my payment after the change? A. The new remittance address is P.O. Box 4531 Carol Stream, IL You can begin submitting payments to Red Iron beginning October 1, Q. What happens if I send my money to the wrong remit to address? A. Payments sent to the old remit to address will be forwarded to Red Iron for a limited period of time and after that period of time the payments will be returned to you. Please make sure that your records are updated to reflect the correct payment address. Page 4 of 5

5 Rates and Terms Actual rates and terms will be governed by your agreements with Red Iron, but the following general concepts apply. Q. Will my existing terms be the same after conversion? A. Your payment terms will still be those offered by Red Iron based on the Toro or Exmark programs and will not change based on this conversion. The due dates for open invoices on your account at the time of conversion will remain unchanged. Q. Will I be charged late charges? A. Late charges will be calculated based on the amount of any past due open account invoices on an invoice-by-invoice basis. Open credits will not be netted against past due amounts when calculating past due charges. Once you apply outstanding credits, any late charges previously assessed will be adjusted back to the date of the credit memo. It is important to make sure that credits are utilized in a timely manner to avoid potential late charges on due in full invoices. You can reduce or avoid incurring late charges by applying your open credits to your invoices via the Dealer Access System (DAS). Q. Will my interest rate be the same? A. Floor plan interest rates after the free floor period will not change. Open account will be assessed late charges if there is a past due amount. Q. What happens when I pay late? A. You may be charged interest or late charges according to your agreement with Red Iron. In addition, any applicable cash discount will be forfeited if payment is not received by the due date. Q. How is interest on past due balances calculated? A. This is a change from the current SAP system. Under DAS, interest is calculated based on average principal balance; unapplied credits and suspense are not included in principal. As credits are applied to principal in the future, interest credit will be applied from the date the credit was received by Red Iron. Credits open at the time of conversion will have a receipt date of October 1, 2013 for interest credit. It is important to view your account frequently and utilize your credits as they are issued. Other: Q. Will my credit line for inventory be affected by the change? A. Your inventory line of credit will not be negatively impacted by this change. Your line of credit may be adjusted if necessary to include both parts and inventory requirements. Page 5 of 5