AR Credit and Collections Version

Managing Credit and Collections

Efficient processing of customers credit and collections is easily accomplished with ERP's Accounts Receivable module.
Collection processing is made easier to ensure your critical cash flow.
Timely reviews and updates of customers provide essential information for your credit and collections department.

Some of the credit and collections tools offered by AR allow you to:

• Associate organizations and customers
• View critical customer credit data
• Use the event monitor
• Create action items
• Incorporate workflow
• Issue dunning letters
• Execute aging
• Generate statements

Credit Management Features

Associating Customers

AR lets you associate customers into parent/child relationships so you can view the entire credit history for a customer.
The parent customer:

• Displays the summary totals of its children customers.
• Assumes any debit for its children customers.

The AR module even allows a child customer's totals to roll into another customer.

Event Monitor

Accounts Receivable uses an event monitor to constantly keep a watch on events that happen within the application and to request the necessary response from the needed personnel.

The event monitor employs user-defined rules for different categories of customers to control the workflow.
For example, if a customer's outstanding balance exceeds 80% of the credit limit for a high-risk customer, the event monitor can trigger a series of action items.
These action items could include:

• Sending an email to the customer's credit manager.
• Initiating an action item for a salesperson.
• Creating a letter reminder for the customer.
• Any other user-defined action items.

The event monitor can automate many of the action items.

Closing the Work Flow

ERP's Accounts Receivable lets you quickly and efficiently close the workflow loop in order to get the cash into your organization.

An invoice enters the AR application from an order entry/billing application.
The invoice causes the customer's balance to exceed its credit limit.
The event of exceeding the credit limit triggers an action item to notify the credit manager and sends a letter to the customer requesting payment.
The customer sends a payment and it is applied against the invoice.

Figure 1: Workflow of AR Invoices and Receipts

By automating the workflow, AR excels in retrieving the cash for your organization.

Dunning Letters

Accounts Receivable enables you to send dunning letters either:

• Automatically by selecting customers through user-defined selection criteria
• Manually by selecting the customers

The letters can be created within the AR module or exported to a PDF document.

Preparing for a Statement Run

For AR, a statement consists of a listing that contains all the customer's outstanding items.

In preparation for an automatic statement run, you can:

• Select the type of statement, such as detail, summary, or one that is executed every 20 days.
• Select customers to receive a statement by a profile, such as:
  • All customers with an outstanding balance over $200
  • All customers with a specific analysis code
• Preview and edit the statement prior to printing it.

Generating a Statement Run

After selecting the customers, you can execute the statement run at any time.
You can accumulate statement runs and print any one or all when ready.

AR supports sending statements to a customer through email.