35 Overview to Credit and Collections Management

This chapter contains these topics:

35.1 Objectives

  • To set up information for credit and collection management

  • To update A/R information for credit and collection management

  • To determine the average number of days a customer is late in paying invoices

  • To locate summarized information about the status of an account

  • To review and work customer accounts for credit management

  • To create credit reporting tapes

  • To review and work past-due accounts for collection management

  • To print credit and collections reports

35.2 About Credit and Collections Management

Effective management of credit and collections information is fundamental to an Accounts Receivable department. The JD Edwards World Accounts Receivable system offers a variety of features to help manage your receivables. You can set up and define information to meet the specific needs of your business.

Credit and collections management consists of:

  • Setting up credit and collection information

  • Updating A/R information for customer analysis

  • Determining average days late

  • Reviewing account status information

  • Managing credit information

  • Creating credit reporting tapes

  • Managing collections information

  • Printing credit and collections reports

The following lists the various ways to effectively manage your credit and collections information.

Credit information Collections information
When managing credit information, you can access a variety customer information from a centralized online location. For example, you can:
  • Review a summary of an account's credit status and identify customers who are over their credit limit

  • Change and update credit limits and credit review dates

  • Analyze a customer's payment trends and transaction history

  • Create a future tickler message or reminder

  • Enter and review notes about a customer

You can also:

  • 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

Create magnetic tapes of A/R information about customers to send to credit agencies

When managing collections information, you can:
  • Analyze your customer accounts and implement collection decisions quickly by accessing various A/R information from one centralized online location

  • Monitor and work your customer accounts that are past due or have tickler messages scheduled for review

  • Display customized lists of customers so that you can review and document collection issues and commitments

  • Print payment reminders or delinquency notices for past-due accounts

  • Determine if you want a customer to appear on a collection report

Review online payment reminder and collection information