"We have used the Collections Management Solution software for one year now and have been very satisfied. It allows our credit representatives to easily identify, isolate and act on past due invoices. It affords management a tool to monitor the results globally, by groups and by individuals..."

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Microsoft Dynamics NAV Collections Management Solution - Cash Flow Management Software

Product Overview

In this ever more competitive economic environment, cash flow management is becoming critical to success. Your single most important cash investment is your receivables and yet in the past all you have had to manage this critical asset is an Aging Report. Not anymore!

Solutions is pleased to present for your consideration the Collections Management Solution for Microsoft Dynamics NAV, a highly specialized contact manager designed specifically to support your collections process. This powerful application will allow you to eliminate all non-productive activities, systematize your collections process, reduce your receivables significantly, and therefore generate what could prove to be a substantial cash flow. Just consider for a moment the following:

  • Your payback can be measured in terms of a few short months.
  • You define who is going to be responsible for collections and when overdue invoices are passed to the application.
  • All of the information you need to discuss this invoice with a customer is right there at your fingertips (no more waiting for the Aging Report to be printed, determining who needs to be called, researching information concerning each overdue invoice and maintaining highly inefficient manual notes).
  • You record who you talked to, what they said, when they promise to pay and when you should call them again.
  • If you need to you can collaborate with other people in the organization to collect this account.
  • You can even involve your sales reps in the process by letting them see if any of their customers have collections issues.

All of these functions are available and much more and yet the system can be installed and operational in a few hours. If you call your customers systematically and insist that they provide you with a specific payment date, they will pay you more rapidly. It really is that simple!

While the primary objective of the Collections Management Solution is encouraging customers to pay your invoices in a more timely manner (i.e. reduce Average Days Late), the application serves multiple purposes all of which relate to the effective control of AR. In actual practice the Collections Management Solution handles the following problematic invoice types.

  • Standard overdue invoices
  • High value overdue invoices where the collections process should start sooner
  • Partially paid invoices
  • Customer chargebacks (a routine issue for firms in the distribution, manufacturing and apparel industries)
  • Unidentified payments (you receive a payment from a customer, but there is no remittance information)
  • Invoices in dispute (the customer says that there is a problem with your product shipment or service delivery and obviously the invoice will not be paid until this issue has been reconciled)

Virtually every firm should be using some form of software driven collections process. That just makes good business sense. Depending on the current status of your outstanding accounts, you could reduce your receivables by 5% or possibly even more. While this does not sound like a significant amount, multiply your current receivables balance by 5% and consider the resulting cash flow!

Exception List

Sell Sheet 001A

he Collections Management Solution is a specialized contact manager that gives users all of the tools they need to minimize payment delays while contributing to CRM objectives and strategies.

Key Elements

The three key elements to The Collections Management Solution are the Exception List (shown above), the Exception Manager (shown below) and the notion of Trigger Points.

  • The Exception List displays all invoices currently assigned to an individual Collection Representative or workgroup. In addition the Exception List can be used by managers to monitor and control the collection process.
  • The Exception Manager tracks the contact history for each invoice providing users with all of the functionality and information they would expect from a contact manager and then some.
  • The Collections Management Solution allows users to define a Trigger Point (Due Date + X Days) when an invoice will be transferred to a Collection Representative's Exception List.

Power and Ease-of-Use Standard

While The Collections Management Solution can serve very large organizations with many people involved in the collection process, its power can be unleashed by firms with only one person assigned to collecting overdue invoices without that person having to wade through layers of complexity. The following features are supported:

  • Individual Collection Representatives and Workgroups (where people share collections responsibilities) are supported.
  • Sales Representatives can be given full or read-only access.
  • A hierarchy with up to three levels can be defined to increase management oversight.
  • Invoices can be passed up the line for more serious action or just for advice.
  • Trigger Points can be defined as system defaults, customer specific or based on a customer's payment history (including automatic updates to reflect current payment patterns).
  • Customers can be assigned to individual Collection Representatives or Workgroups.
  • A default Collection Representative can be defined so that even new customers will be tracked.
  • High-value or partially paid invoices can be transferred earlier in the process.
  • Small value invoices can be held until there are a sufficient number where the cost to collect would be more reasonable.
  • The Exception List is sorted by Next Contact Date so that users can see who they need to contact when.
  • New invoices are added to the Exception List automatically.
  • The Exception List can be sorted by customer so that Collection Representatives can discuss multiple invoices in one contact and copy their collection notes to each invoice automatically.

Exception Manager

Basic Screen Organization
(click to enlarge)

Sell Sheet 011A

The Exception Manager performs exactly the same functions as a contact manager, but is geared specifically to meet your collections needs.

Once an invoice has been selected from the Exception List, it will be displayed in the Exception Manager (shown above) including a complete contact history for that invoice.

  • The Exception Manager provides the same general functionality as a Contact Manager, but unlike a Contact Manager is geared specifically to your collection requirements.
  • The system supports an unlimited number of customer collection contacts per customer.
  • In addition, you will be able to record and review both customer specific comments and contact specific comments so that users will understand more completely the customer and each person in the customer's organization.
  • Collections Representatives can access a complete payment history, aging reports, sales order and invoice details, and other critical information from within the Exception Manager.
  • Users can reprint invoices or statements and access e-mail from within the application.
  • Once a contact has been completed, a Next Contact Date is assigned and the invoice is assigned a new position in the Exception List depending on the Next Contact Date.
  • If a customer disputes an invoice, even though it may not be overdue, it can be moved to the application automatically.

Reporting System

A number of very useful reports help users monitor the collection process as well as the effectiveness of individual users.

  • Managers can review the progress of all people for whom they are responsible, from adding notes to collection files to transferring responsibility from one user to another.
  • The complete collection history for each customer is available for review so that people can understand how a customer has acted in the past, including what delaying tactics they have employed.
  • Each customer's payment history is tracked so that you can determine both their Average Days to Pay and more importantly their Average Days Late.

Trigger Points

The key to any collection process is how quickly it can start after an invoice is overdue. The sooner the customer is contacted, the sooner they will pay. This is particularly true for customers who run into financial difficulty. If you do not start the process soon enough, a customer can reach their own point of no return and no efforts on your part will result in payment.

The Collections Management Solution gives you tools that cannot be found elsewhere and as a result your control of the collection process will be enhanced significantly.

  • A default Trigger Point (Due Date + X Days) can be defined for all customers.
  • A customer-specific Trigger Point can be assigned to individual customers.
  • Trigger Points can be based upon a customer's payment history and dynamically changed as a customer's payment history changes.
  • High-value invoices can be assigned specific Trigger Points so they are monitored earlier than other invoices.
  • Partially-paid invoices can be transferred to The Collections Management Solution immediately under the assumption that a customer would not normally part-pay an invoice.
  • Customers with historically poor payment histories can be assigned a negative Trigger Point so that they are contacted prior to the Invoice Due Date and reminded to pay their invoice.

Payment Classes

Basic Screen Organization

Although The Collections Management Solution supports a manual review and assignment of system or customer-specific Trigger Points, the use of Payment Classes can become an extremely powerful feature. The system will measure each customer's payment history and assign the customer to a Payment Class automatically. Each Payment Class can be assigned a different Trigger Point, thus giving customers stricter or more lenient Trigger Points depending on their current payment history. The actual value that is used to assign a customer to a specific Payment Class is their Average Days Late.

The use of Payment Classes gives you the greatest degree of control over the collection process. As the screen above illustrates, the Payment Class Calculations screen allows you to review each customers' payment history and then assign them to the best-suited Payment Class.

  • Rather than having to review each customer's payment history via a Payment Class Report and then manually changing their Trigger Point, The Collections Management Solution does most of the review and reassignment for you subject of course to your approval.
  • Specific customers can be exempted from this process and will therefore revert to their previously assigned customer-specific Trigger Point.
  • You control what payment history is taken into consideration when calculating Average Days Late. This includes specifying a minimum number of invoices, the number of months payment history and when that payment history should start.
  • Each customer is assigned to a Payment Class tentatively.
  • In addition to the suggested Payment Class, the system will display the Payment Class to which the customer is currently assigned.
  • You can elect to accept the system's recommendation, revert to the previously assigned Payment Class or assign a customer to a Payment Class of your own selection.

Control is the Name of the Game

The key to effective utilization of any software application is giving people what they need in order to do their jobs better. We have taken a great deal of time creating a set of tools that give users all of the assistance they need to not just collect overdue accounts, but to become more proactive in preventing accounts from becoming overdue in the first place.

  • All customers, no matter whether they are assigned to a Collection Representative or not, will be tracked by the system.
  • If a customer disputes an invoice, even though it may not be overdue yet, that invoice can be transferred to the system for tracking and resolution.
  • If a Collection Representative needs the assistance of someone else in the organization, they can send the entire collection file to that person as a Query. That person can in turn review the file and respond to the Query.
  • Users can group invoices by customer and establish the same Next Action Date so that they can discuss multiple invoices with their contact.
  • Users can copy all relevant contact information to other invoices if more than one invoice has been discussed at the same time.
  • Every piece of information users need to discuss either a single overdue invoice, multiple overdue invoices or even a customer's worsening payment history is available within the same set of screens.
  • If users need to transfer responsibility for a single file or a group of invoices or even an entire account, each of these actions can be accommodated with ease.
  • You can even instruct the system to transfer a file automatically if no action is taken within a set time limit.

Summary

In this ever more fragile economy, managing cash flows may prove to be one of the keys to survival. Customers will delay payment in an effort to preserve what little free cash they have. Unfortunately this can prove to be extremely painful for users and may contribute to their demise.

The Collections Management Solution has been designed from the ground up to help users track and collect overdue accounts and manage the collection process more effectively than they could using any existing procedures. An immediate benefit for many users is an absolute reduction in Accounts Receivable balances as a percentage of revenue. As an example, a 3 day reduction in Accounts Receivable balances (a very reasonable and achievable target) will generate $5,000 in cash flow for every $1 million in revenue). Thus, a $10 million dollar company should be able to generate $50,000 in cash flow simply by investing in The Collections Management Solution.

The Collections Management Solution is a critical success tool that can and should be used by all organizations. There are no other products like this on the market today.

The Collections Management Solution will help you reduce your Accounts Receivable balances significantly and manage those balances so that they will remain within acceptable limits.

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