Set up collections
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
Complete the following tasks to prepare to use collections functionality. For more information, see Collections and credit in Accounts receivable.
Set up aging period definitions
Create an aging snapshot
Optional: Set up customer pools
Optional: Create a collections team
Set up a collections case category
Set up journal names (settlement, write-off, and NSF)
Set up a reason code for write-off transactions
Set up a folder for email attachments and create email templates
Set up Accounts receivable parameters for collections
Optional: Set up collections agents
Set up a write-off account
Set up NSF information for bank accounts
Set up Outlook settings for users of the Collections form
Set up email settings for collections customer contacts
Set up email settings for salespeople
The tasks are described in the following sections.
Set up aging period definitions
Set up an aging period definition, which defines the columns that appear on the Collections, Collections activities, and Collections cases list pages. It also defines the periods that are shown in the Collections form. If a customer pool is set up, the aging period definition for the pool is used. If no pools are set up, the default aging period definition that is specified in the Accounts receivable parameters form is used. If no default aging period definition is specified, the first aging period definition in the Aging period definitions form is used.
Click Accounts receivable > Setup > Collections > Aging period definitions.
Enter a name for the aging period definition.
On the Periods FastTab, create aging periods. For more information, see Aging period definitions (form).
Close the form.
Create an aging snapshot
Create aging snapshot records for all customers or for the customers in a customer pool. Aging snapshot information is shown on the Collections list page and in the Collections form. You must create an aging snapshot before you can use the list page. The list page shows information only for customers for whom an aging snapshot has been created. For more information, see Customer aging snapshot (form).
Click Accounts receivable > Periodic > Collections > Customer aging snapshot.
Select an aging period definition.
Optional: Select a pool.
Select the type of date in the transaction records to use to assign transactions to aging periods.
Select a date to base the aging snapshot calculations on. For more information, see Customer aging snapshot (form).
Note
If the aging snapshot process will run as part of a batch, select Today's date in the Aging as of field. Otherwise, the aging snapshot is always created for the same date.
Optional: Click the Company range tab and select the legal entities to include in the aging snapshot.
Optional: Click the Batch tab and set up batch processing.
Click OK.
Optional: Set up customer pools
You can set up customer pools to represent groups of customers. You can use customer pools as filters for the customer information that is displayed on collections list pages, in the Collections form, or when you create aging snapshots. For more information, see Customer pools (form).
Click Accounts receivable > Setup > Collections > Customer pools.
Enter a pool ID and description.
Select a pool type.
Click Select pool criteria to select the query criteria, and then click OK.
Click Preview customer pool to preview the customers in the pool.
Note
Only customers for whom an aging snapshot has been created will appear in the list.
Close the Customer pools form.
Create a new aging snapshot that includes the customer pool. For more information, see Create an aging snapshot.
Optional: Create a collections team
If multiple people in your organization do collections work, you can set up a collections team. You can select the team in the Accounts receivable parameters form. If you do not create a collections team, one will be created automatically when you set up collections agents in the Collections agent form.
Click Organization administration > Setup > Organization > Teams.
In the Teams form, click Team types.
Click New and enter a name for the team type, such as Collections.
Select the Require team members to be Microsoft Dynamics AX users check box, and then select the people who are allowed in this type of team. This can include Employee, Contractor, or both.
Close the form. Close and reopen the Teams form.
In the Teams form, click New and enter a name for the team, such as Collections.
Select the team type that you created in step 3.
Enter a description for the team and select the Active check box.
You do not have to add team members now. Instead, you will add team members in the Collections agent form.
Close the form.
Set up a collections case category
If you will organize your collections work by using cases, set up a case category with the category type of Collections. This is required only if you want to use the case function in the Collections form. For more information about cases, see Case management.
Click Sales and marketing > Setup > Cases > Case categories.
Click New, and then click Case category.
Enter a name and description for the case category.
Select Collections as the category type.
On the Activities FastTab, specify options for a default activity, a default follow-up activity, or both.
Optional: On the General FastTab, enter additional information about the case category. For more information, see Case categories (form).
Close the form.
Set up journal names (settlement, write-off, and NSF)
Set up journal names to use when transactions are processed in the Collections form. This includes settling a transaction, writing off a transaction, or processing a not sufficient funds (NSF) payment.
Click General ledger > Setup > Journals > Journal names.
Create three journal names that have the following properties. Click New to create each journal name. For more information, see Journal names (form).
Description
Journal type
Settlement
Customer payment
Write-off
Daily
NSF
Customer payment
Close the form.
Set up a reason code for write-off transactions
Set up a default reason code to use when transactions are written off in the Collections form.
Click Accounts receivable > Setup > Customers > Customer reasons.
Click New to create a reason code.
Enter a reason code and a default comment.
Select the Customer check box.
Close the form.
Set up a folder for email attachments and create email templates
If you will send email messages that have Microsoft Excel attachments by using the Collections form, set up a folder for email attachments. You can also create email templates. The folder for email attachments is required, but the email templates are optional. For more information about email templates and variables, see E-mail templates (form).
Click System administration > Setup > System > E-mail parameters.
In the Allow embedded data and attached files from field, enter the path of a server location where email attachments are stored. When you send an email message that has an attached customer statement, the attachment is stored in this location.
Close the E-mail parameters form.
Click Organization administration > Setup > E-mail templates.
Optional: Create three email templates for the following purposes:
Message to customer contact
Message to customer contact with attached statement
Message to salesperson contact
For each template, follow these steps:
Enter an email ID and description.
Select a default language.
Enter a sender name and sender email address. These fields are required; however, they will not be used when you send email messages in the Collections form. The sender name and sender email address will be that of the person who is using the Collections form.
In the lower pane, select a default language for the template.
Enter the subject. This text will appear in the subject line of email messages that are created by using this template.
Click Template, and then enter the message body text. Save the template and close the form.
You can use the following variables in the message body text:
%CustomerAccount% – The customer account that is displayed in the Collections form.
%CustomerName% – The customer name that is displayed in the Collections form.
Close the E-mail templates form.
Set up Accounts receivable parameters for collections
Set up Accounts receivable parameters that are related to collections.
Click Accounts receivable > Setup > Accounts receivable parameters.
Click Collections.
Optional: Select the Exclude disputed transactions from fee calculations check box to prevent collection letters from being generated for transactions that are disputed.
In the Aging period definition field, select a default aging period definition to use in the Collections form and on the Collections list page.
Optional: In the Team field, select a team. You can assign collections agents to the collections team in the Collections agent form.
In the Write-off journal field, select a journal name to use for write-off transactions.
In the Reason code field, select a default reason code to use for write-off transactions.
Optional: Select the Separate sales tax check box to create separate journal entries for sales tax amounts that are written off. This can help you restate your sales tax liability because of the amount that was written off.
Optional: On the E-mail template FastTab, select email templates to use for each type of message.
Close the form.
Optional: Set up collections agents
If multiple people in your organization do collections work, you can set up collections agents. A collections agent is worker who is set up as a user in the User relations form. You can assign customer pools, which are customer queries, to collections agents to help the agents organize their work. The collections agents are added to the team that is selected in the Accounts receivable parameters form. If a team is not selected in that form, a new team named Collections is automatically created and the collections agents are added to that team.
Click System administration > Common > Users > User relations.
Click New and select a worker. The worker can be either an employee or a contractor.
Select the user ID that corresponds to the worker.
Optional: Repeat steps 2 and 3 for additional workers, and then close the form.
Click Accounts receivable > Setup > Collections > Collections agents.
Click Add team members.
Select a team member and then click Add.
Optional: Repeat steps 6 and 7 for additional collections agents.
Optional: In the Collections agent form, assign one or more customer pools to the collections agents. For more information, see Collections agents (form).
Close the form.
Set up a write-off account
Set up a write-off account that is used for the general ledger write-off entry when a transaction is written off. For more information, see About default entries for write-off transactions.
Click Accounts receivable > Setup > Customer posting profiles.
Select a posting profile and then click the Setup FastTab.
In the Write-off account field, select the ledger account to post write-off transactions to.
Repeat steps 2 and 3 for the remaining posting profiles that can be used for posting write-off transactions.
Close the form.
Set up NSF information for bank accounts
Use this procedure to specify information that will be used when you process NSF payments in the Collections form.
Click Cash and bank management > Common > Bank accounts.
Double-click a bank account to open the Bank accounts form.
On the Action Pane, click Edit Record, and then click the Currency management FastTab.
In the Charges group field, select the charges group to use for fees that you charge to your customer for NSF payments.
In the NSF payment journal field, select the payment journal name to use when canceling a payment that has been returned because of not sufficient funds.
Close the form.
Set up Outlook settings for users of the Collections form
Before workers can create activities or send email messages by using the Collections form, you must verify that the Microsoft Outlook synchronization configuration key is selected and that Outlook synchronization is set up for the worker. For more information about Outlook synchronization, see Integrating with Microsoft Outlook. For more information about how to create a worker, see Key tasks: Workers.
Set up email and address settings for collections customer contacts
Set up email addresses for customer contacts if you want to send email messages to those contacts from the Collections form. The collections contact is used as the default contact in the Collections form. You can set up a statement address for the customer if statements should have a different address from the primary address.
Note
If a collections contact for a customer is not specified, the primary contact for the customer is used. If a primary contact is not specified, email messages will be sent to the first address listed in the Contacts form.
Click Accounts receivable > Common > Customers > All customers.
Double-click a customer account to open the Customers form.
On the Action Pane, click Edit.
Optional: On the Addresses FastTab, click Add, and then enter a statement address. In the Purpose field, select Statement, enter address information, and then click OK.
On the Credit and collections FastTab, in the Collections contact field, select the person in the customer organization who works with your collections agent. This contact is used as the default contact in the Collections form, and is the person to whom email messages are sent.
Press CTRL+S.
Right-click in the Collections contact field and select View details.
In the Contacts form, click the Contact information FastTab.
If the contact does not have an email address specified, click Add to add an address.
Select a type that uses the E-mail address communication method.
In the Contact number/address field, enter the primary email address for the contact. If there is no primary email address, the first email address that is listed will be displayed.
Repeat steps 1 through 11 for the remaining customer contacts.
Close the forms.
Set up email settings for salespeople
Set up email addresses for salespeople if you want to send email messages to salespeople from the Collections form. Set up an email address for each sales representative in each commission sales group. The sales representative who has the Contact check box selected is the default salesperson to whom email messages are sent. If a sales representative is not specified, the primary salesperson for the customer organization is used. If a primary salesperson is not specified, email messages will be sent to the first salesperson listed in the form.
Click Sales and marketing > Setup > Commissions > Sales groups.
Select a commission sales group and then click Sales rep.
For a sales representative who has the Contact check box selected, right-click in the Name field and select View details.
In the Address book form, click the Contact information tab.
If the worker does not have an email address specified, click Add to add an email address.
Enter a brief description of the new address. In the Type field, select E-mail address.
In the Contact number/address field, enter the email address for the salesperson.
Click More options > Advanced.
In the Purpose field, select a purpose. Click Close to close the Edit contact information form, and then click Close to close the Address book form.
Repeat steps 1 through 9 for the remaining salesperson contacts.
Close the forms.
See also
Set up interest rates for an interest code