Collections and Credit Management
Collections and Credit Management tests how Receivables calculates exposure, enforces credit limits, and drives delinquent customers through collection strategies, dunning, tasks, disputes, and promises to pay.
Credit management
Credit limits and related attributes come from the customer profile class and can be overridden at the account. Credit check rules determine when exposure is evaluated, for example at order entry or invoice creation. Exposure generally reflects open receivables and other credit-bearing balances; when exposure exceeds the limit, the transaction can be placed on credit hold. Collectors can release a hold manually, with the release recorded for audit.
Collections
Aging buckets classify receivables by days past due. A collection strategy assigns scoring and ordered tasks, including dunning letters, calls, and disputes. A dispute on a transaction should stop dunning for that amount while investigation proceeds. A promise to pay records a committed date and amount and can suspend escalation until the promise is broken.
Worked example
A customer has a 100,000 limit and 95,000 exposure. A new 10,000 invoice would raise exposure to 105,000, so the credit check fails and the transaction is held. The collector reviews the account, sees a 6,000 unapplied receipt that should have been applied, applies it, and exposure falls to 89,000. Re-running the check releases the hold for the new invoice.
Traps
- Looking only at the profile class limit when an account-level override exists.
- Continuing dunning on a disputed transaction, which inflates collector workload and damages the relationship.
- Assuming a promise to pay clears the balance; it only changes follow-up timing.