MODACC - ACCOUNTING Ó UNCTAD – SITE (V1.15) 4.13 Validating the payment After  entering  the  details  of  the  payment,  select  ‘Local  Menu’,  ‘Action’  for  a  system  check  of  the payment  details.  You  must   ‘Validate’  the  payment  to  record  the  payment  transaction  within  the system. See  Local Menu Action. After validation the receipt number is inserted in the display on the screen. Using Credit Facilities To facilitate clearance, payment of duty and taxes can be deferred by allowing  ‘credit’ to a declarant (or   company).   This   credit   should   cover   the   duty   and   tax   liabilities   for   an   agreed   period.   A predetermined  credit  limit  is  set,  according  to  an  agreement  reached  with  the  individual  account holder  and  subject  to  the  provision  of  adequate  security,  such  as  a  bank  guarantee  to  cover  the duty and tax amounts. The agreement specifies the terms under which the credit account is to be paid and includes the period allowed for settlement. The use of credit facilities relies on an understanding of the three stages of the process: - 1.     Establishing and activating a credit account for the declarant; 2.     Accessing the account  during the declaration preparation and assessment process; and 3.     Periodic settlement of the account by paying the total duties and taxes deferred. These stages are described in detail in the following pages. Establishing a Credit Account New   Credit   Accounts   are   created   (and   existing   accounts   modified)   using   the   menu   option ‘Functions’, ‘Account Management’. The  ‘Credit  account’  window  is  for  the  control  and  maintenance  of  both  Credit  and  Pre-Payment accounts.  It  displays  a  table  of  existing  accounts  showing  the  account  code  or  number,  account type, current status, declarant or company code, and validity dates. An example screen display is as follows: Fig. 4. 2   ‘Functions: Account Management’ Opening or modifying a Credit Account Select ‘Open’ (new account) or ‘Modify’ (existing account) to open the screen for credit accounts. Note: to modify an existing ‘active’ account, the account status must be set to ‘suspended’. Use the ‘Activate’ and ‘Suspend’ controls within the Credit account window to switch the account status.