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The credit control facility allows you to optimise cash collection and reduce your total outstanding receivables, while maintaining good customer relations. You can access credit analysis information and identify accounts requiring attention using the credit control list and process customers accordingly by entering disputes, diaries and query transactions and reviewing dunning letters.
Credit control online processing applies to the following areas:
Credit control offline processing applies to the following:
Use the Credit Control by Prime Key List screen MBFQ to identify customer accounts that need attention. Extensive search criteria are provided allowing you to display account information according to your own criteria. For example, you can retrieve a list of customers from within a specified range of overdue amounts or credit limit range or both. If you use a combination of search criteria, the system displays only those customers that match both of the criteria. The available criteria depends upon the criteria indicator you select in the selection window when you access the screen. The table below identifies the criteria available within each criteria indicator:
Indicator =Prime |
Indicator =Name | Indicator = Search |
Company Account Ledger Debt From Overdue From to Age of Debt Average Days Late Credit Limit From/to % of Credit Limit |
Company Short Name |
Company Search Indicator Search Key |
The Extended Selection action allows you to display a list of customers by ledger and:
Once the screen is populated with the matching customers, you can use the Selection Sort action to organise the list using a set of sort parameters that you specify. The first parameter you specify will sort the customers from lowest value to highest either alphabetically or numerically. For example, if you sort the customers by outstanding balance, the customers are rearranged from lowest outstanding balance to highest outstanding balance.
If you enter a second parameter for Selection Sort, it is used only to sort customers that match at the primary parameter. For example, if two customers have the same outstanding balance (primary parameter), they could be sorted by credit limit (secondary parameter).
Process |
Process Description | Function |
BX1 |
Credit request periodic upload |
Converts customer credit request file for monthly update. |
BX2 |
Credit request history upload |
Converts customer credit request file for historic update. |
BX3 |
Credit request file |
Creates customer credit request file with duplicates control. |
If Maintain Credit Rating is checked and a Default Credit Agency code entered on the Credit Rating/Analysis format of the Customer Controls screen MBCD, the credit rating of the customer is displayed from the Customer List screen MBCA by clicking any of the options from the Credit Rating menu located on the Action Bar.
The Newest Ratings and the Oldest Ratings formats of the Credit Rating Maintenance screen MBCA display twelve periods. The most recent credit rating is on the top row of the Newest Ratings format, while the oldest credit rating is on the bottom row of the Oldest Ratings format. Click Credit Rating | Amend Latest to enter the latest credit information on the Codes/References format of the Credit Rating Maintenance screen MBC3. Once this format is amended, the Newest Ratings format of the Credit Rating Maintenance screen MBC3 updates the current credit rating on the top row.
All previously entered information is displayed on the following twelve rows. Click Credit Rating | View History to view any row of credit history for a customer.
To request a credit rating for a customer, a customer credit request file must be sent to a credit rating agency. The customer detail information in the file is extracted from e5 and processed by submitting the credit request process, BX3. Once submitted, the Credit Rating Maintenance screen MBXL is displayed to enter the credit rating parameters which are extracted from the customer file.
When the file is received from the credit agency, it is converted and then uploaded into e5 by the credit request periodic upload or the credit request history upload. Existing credit ratings, associated dates and payment scores are rolled over and the new rating is inserted for the current period for each customer on the file.
Query management lets you assign one or more queries to a transaction or item at the transaction level. If you have a question or concern about a particular invoice, you can attach a query to flag the transaction. The flag indicates that the transaction requires attention, for example, when a customer requests a copy of an invoice before making a payment.
There are two types of queries as follows:
Query management allows you to:
The e5 AR has a two stage dunning process.
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Stage |
Description |
| One | Stage one is the running of the dunning process itself which will scan all accounts that are eligible for dunning and generate dunning letters for all those accounts and transactions that are overdue. |
| Two | Stage two is the checking of those letters and the subsequent issuing of them. This second stage allows you the chance to perform any last minute intervention before the letters are printed. Using screen MBFX you will be able to view and amend dunning letters prior to printing. |
LRC – Legal Recoveries & Collections Ltd - are one of the UK’s leading independent Debt Collection Agencies that recover debt for businesses and individuals. The e5 AR module can communicate with the online LRC Debt Recovery System to provide integration between the two products for the transfer and recovery of the outstanding debt from the e5 AR module to the LRC system. Final Dunning letter is produced in e5 with details of further action via Debt Recovery
An example of the processing cycle when using LRC for Debt Recovery will be as follows:
The e5 LRC integration will consist of the following:
See also
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© Advanced, Jan 2021 |
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