Defining Credit & Collections Options
The functionality described in this section is meant to handle the collection of unpaid balances. If your organization practices open-item accounting and collects on unpaid bills, you will not use this functionality. Rather, you will use the functionality described under Defining Overdue Processing Options.
The system periodically monitors how much your customers owe to ensure they haven't violated your collection criteria. When a violation is detected, the system generates the appropriate responses (e.g., letters, disconnect notices, collection agency referrals, and eventually write off). This section describes how to set up the tables that control your credit & collections processing.
Setting up the credit & collections control tables is as challenging as your organization's collection rules. If you have simple rules then your setup process will be straightforward. If your collection rules are complicated (e.g., they differ based on the type of customer, the type of debt, the age of debt, the type of service, etc.), then your setup process will be more challenging.