It is critical to know when to place an account for collection. The more of the following statements that are true, the more appropriate it is to place an account for collection immediately:
When to Place An Account For Collection
YES
NO
Warning Sign
The customer has made and broken two or more (many would say one is enough) payment commitments. Despite the severity of the items listed below, this may be the most important one on this checklist.
The account is 90 days or more past due.
The customer promised to pay one amount, but paid a lesser amount.
After numerous conversations and commitments, the customer now disputes the validity of the balance due.
Other creditors have placed the account for collection or have sued the company.
Trade clearance reports show a significant slowdown in payments to all creditors.
The customer has bounced at least one check, and has not replaced it.
The customer indicates that it is "changing banks."
The customer will no longer take your calls, and refuses to return your messages.
You are unable to reach a decision maker and are forced to deal only with clerks.
Key personnel within the debtor company are leaving.
You learn the business is for sale, or that it was recently sold.
The debtor company has filed a Bulk Transfer notice.
The debtor offers a payment plan, but refuses to put the offer or their commitment in writing.
The phone is disconnected, or the customer moved without telling you.
The salesperson handling the account indicates they are unable to help you in any way to collect the outstanding balance.
Customer master file has important components to consider for effective account receivables. Here's the list of complete components in customer master file.
Creating and Processing Collection Groups in SAP FSCM
This SAP FSCM course on collection groups helps in collections and receivables management by evaluating & prioritizing the right customers using a predefined collection strategy.
It is critical to know when to place an account for collection. The more of the following statements that are true, the more appropriate it is to place an account for collection immediately:
When to Place An Account For Collection
YES
NO
Warning Sign
The customer has made and broken two or more (many would say one is enough) payment commitments. Despite the severity of the items listed below, this may be the most important one on this checklist.
The account is 90 days or more past due.
The customer promised to pay one amount, but paid a lesser amount.
After numerous conversations and commitments, the customer now disputes the validity of the balance due.
Other creditors have placed the account for collection or have sued the company.
Trade clearance reports show a significant slowdown in payments to all creditors.
The customer has bounced at least one check, and has not replaced it.
The customer indicates that it is "changing banks."
The customer will no longer take your calls, and refuses to return your messages.
You are unable to reach a decision maker and are forced to deal only with clerks.
Key personnel within the debtor company are leaving.
You learn the business is for sale, or that it was recently sold.
The debtor company has filed a Bulk Transfer notice.
The debtor offers a payment plan, but refuses to put the offer or their commitment in writing.
The phone is disconnected, or the customer moved without telling you.
The salesperson handling the account indicates they are unable to help you in any way to collect the outstanding balance.
Customer master file has important components to consider for effective account receivables. Here's the list of complete components in customer master file.
Creating and Processing Collection Groups in SAP FSCM
This SAP FSCM course on collection groups helps in collections and receivables management by evaluating & prioritizing the right customers using a predefined collection strategy.
