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    Chapter 02: Credit and Collection Operations: Lesson 01

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    Llyod Daniel Paulo
    Credit and collections management allows businesses to: - Work delinquent credit accounts more aggressively with system-generated lists. - Define multiple aging categories to balance risk and control. - Accelerate collections with prompt notices in customers' languages and currencies. The document discusses ways to effectively manage credit and collection information, including reviewing credit status, payment trends, and collection decisions. It also outlines the roles of a credit and collections department in maximizing sales, cash flow, and minimizing bad debt through processes like approving accounts, establishing credit limits and policies, and managing the collection function.

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    Chapter 02: Credit and Collection Operations: Lesson 01

    Uploaded by

    Llyod Daniel Paulo
    44 views7 pages
    Credit and collections management allows businesses to: - Work delinquent credit accounts more aggressively with system-generated lists. - Define multiple aging categories to balance risk and control. - Accelerate collections with prompt notices in customers' languages and currencies. The document discusses ways to effectively manage credit and collection information, including reviewing credit status, payment trends, and collection decisions. It also outlines the roles of a credit and collections department in maximizing sales, cash flow, and minimizing bad debt through processes like approving accounts, establishing credit limits and policies, and managing the collection function.

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    CHAPTER2 Lesson 1 CreditAndCollectionOperation

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    Credit and collections management allows businesses to: - Work delinquent credit accounts more aggressively with system-generated lists. - Define multiple aging categories to balance risk and control. - Accelerate collections with prompt notices in customers' languages and currencies. The document discusses ways to effectively manage credit and collection information, including reviewing credit status, payment trends, and collection decisions. It also outlines the roles of a credit and collections department in maximizing sales, cash flow, and minimizing bad debt through processes like approving accounts, establishing credit limits and policies, and managing the collection function.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    44 views7 pages

    Chapter 02: Credit and Collection Operations: Lesson 01

    Uploaded by

    Llyod Daniel Paulo
    Credit and collections management allows businesses to: - Work delinquent credit accounts more aggressively with system-generated lists. - Define multiple aging categories to balance risk and control. - Accelerate collections with prompt notices in customers' languages and currencies. The document discusses ways to effectively manage credit and collection information, including reviewing credit status, payment trends, and collection decisions. It also outlines the roles of a credit and collections department in maximizing sales, cash flow, and minimizing bad debt through processes like approving accounts, establishing credit limits and policies, and managing the collection function.

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    You are on page 1of 7

    CHAPTER 02: CREDIT AND

    COLLECTION OPERATIONS
    LESSON 01
    OVERVIEW TO CREDIT AND COLLECTIONS
    MANAGEMENT
    With Credit and Collections Management,
    we can:
    ✔ Work more credit accounts more aggressively with daily,
    system-generated lists of customers requiring attention

    ✔ Define multiple aging categories for a better balance between risk


    and control

    ✔ Accelerate collections efforts by sending out prompt and regular


    notices to past-due accounts, in your customer's language and
    currency
    Ways to Effectively Manage the Credit and
    Collections Information
    Credit Information Collection Information
    Review a summary of an account's credit status and Analyze your customer accounts and implement
    identify customers who are over their credit limit collection decisions

    Change and update credit limits and credit review Monitor and work your customer accounts that are
    dates past due

    Analyze a customer's payment trends and Display customized lists of customers so that you
    transaction history can review and document collection issues and
    commitments

    Enter and review notes about a customer Print payment reminders or delinquency notices for
    past-due accounts
    Credit Information Collection Information
    You can also: Determine if you want a customer to appear on a
    collection report
    ✔ Create daily lists of customers who require
    credit attention
    ✔ Review a complete history of open and closed
    items by a specific credit manager, sales
    location, or account representative
    ✔ Access and review current aging information
    for a customer

    Review online payment reminder and collection


    information
    Roles of Credit and Collection
    Department in Business
    • Maximizing sales
    • Accelerating cash inflow
    • Minimizing bad debt losses
    • Reviewing and approving new accounts
    • Developing and updating credit and collection policies
    • Establishing appropriate credit limits and terms of sale
    for new and active customers
    • Creating new or more appropriate payment terms
    (terms of sale)
    • Managing the collection function
    • Maintaining current information in the credit file on
    each active customer
    • Documenting credit decisions and actions
    • Performing financial analysis on customer financial
    statements
    • Researching and resolving disputes and deductions that
    would otherwise delay or prevent payment of accounts
    receivable
    • Communicating with other departments within the
    company including order entry, sales and shipping
    • Management reporting
    • Safeguarding the company's investment in accounts
    receivable
    End of Lesson 01
    ---

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