The Customer Credit Management process is used for monitoring customers credit activity which includes the customers buying activity and their ability and timeliness to pay for purchases. There are functions for creating and printing reminders on outstanding balances. There are also functions for interest invoicing used for creating and printing interest invoices based on customer invoices due for payment, or paid to late. Write-off notices can be printed and sent out to customers to identify amounts related to invoices that have been written off.
The Customer Credit Management process is divided into seven sub processes.
The Customer Credit Information process handles functions for assignment of credit analysts to customer accounts for tracking and monitoring purposes.
The Reminders process handles functions for creating reminder proposals, printing proposals, printing reminders and cancelling reminders. A reminder history records statistical data of proposals and printed reminders. A reminder analysis facilitates queries to display statistical reminder data in several dimensions. All customers in a company must be linked to a Reminder Template.
The Collection Information process is used to follow up on invoices which have reached the collection level. A check can be performed to see whether invoices that have reached the collection level are included in a mixed payment/ manual customer payment.
The Interest Invoicing process is used for creating and printing interest invoices based on customer invoices and payments. Each customer is linked to an interest template. When invoices are entered, they are automatically linked to that customer's template.
The Write - Off Notice process is used for notifying customers that claims has been written-off. There are functions for creating write-off notice proposals, printing write-off notice proposals and printing write-off notices. Write-offs within an accepted tolerance level are automatically handled at payment entry.
The Difference Notice process is used for creating a notice to the customer if a payment is posted as a Partly Paid Invoice. There are functions for creating difference notice proposals, printing difference notice proposals and printing difference notices.
The Follow-up and Analysis, Customer Credit Management process is used to display customer credit and collection information. There is a function in the process for recalculation of customer credit information. There are also queries related to customer credit management, interest invoicing and reminders. The system makes it possible to view DSO, - Days Sales Outstanding, both graphically and textually.