Describe credit and collection processes
The Collections page provides a centralized view where accounts receivable collections information is managed. Collections managers can use this centralized view to manage collections. Collections agents can begin the collections process either from customer lists that are generated by using predefined collection criteria or from the Customers page.
Before you start to set up or work with collections, you should understand the following concepts:
Customer aging snapshots contain aged balance information at a specific point in time.
Collections customer pools help you organize your work.
Collections agents can have their own customer pools.
List pages organize collections customers, activities, and cases.
All collections information for a customer is on one page, and you can take action from that page.
Interest and fees can be waived, reinstated, or reversed in one step.
Write-off transactions can be created in one step.
Nonsufficient funds (NSF) payments can be processed in one step.
Aging report
The Customer aging report displays the balances that are due from customers, sorted by date interval or aging period. To display the aging report, first you need to configure the aging period definitions.
Each aging period definition that is configured in the preceding screenshot corresponds to a column in the aging balance page when the aging analysis is performed.
You can run the Age customer balances process under the Periodic tasks menu in the Credit and collections module for a given date, along with the aging period definition. The date, together with the unit and interval information that you enter on the Periods FastTab in the preceding page, is used to calculate a date interval for each aging period in the aging balance page under the Collections menu.
You can view this report in reporting currency by changing Currency for aging.
Collection letter
The first step to process collection letters is to configure the Collection letter sequence.
Collection letter sequences can be created based on the terms of payment. On the Overview FastTab, you can create the sequence of collection letters with the series of notifications along with the fee involved and posting account. On the Note FastTab, you can write the note you want to mention in the collection letter.
The next step is to run the Creation of collection letter under the Collection letter menu.
Based on the rules previously defined, collection letters are created, which are available on the Review and process collection letters page under the Collection letter menu.
You can post or cancel the collection letter after review and then send the letter if necessary.