Recievable Management - Deciding timeline for collection of trade recievables

 To Ensure that company's outstandingreceivables are current, company need to construct a timeline for certain receivables collection. While the timeline is important, company should keep copies of letters and notes Dates and times of phone calls in a file or on a note to the customer in a Central Customer Master File. In addition, I Encourage these at company's administrative level to review all invoices over 90 days old. That's the only way to ensure that the accounting staff or collection is always aware of the accounts receivable that will be or have matured. Besides, the data in connection with billing measures (eg: the date and number of letters, telephone logs the print-out, telephone the recipient's name, proof of receipt) should be recorded and archived in folders  receivables account  master data. This will be the supporting evidence if the billing process will lead to the legal process in the courts.
I felt the need to post this, because of scheduling bills receivable has a strategic value in the management of accounts receivable. Why?
  1. Let's face it, that non-tertagihan accounts often originated from our own party (the company that has accounts receivable) , namely: lack of discipline in the conduct billing, to-'s not a lot of discipline due to the corporate culture that is less consistent, PLUS the absence of standard are uncertain about the procedure and penjadawalan billing collection can be used as a benchmark by the staff (if any) or accounting staff.  
  2. Be aware that: naturally, each party tend to put priority on the rights of any liability .That kind of thinking we need to assume to all customers, where all customers (including our own position as a customer at the time) tends to delay the pursuit of money out and money coming in, although not always a good paradigm.

Starting from that point, then the billing schedule (Collection Timeline) should be formulated in such a way, so that it can remind customers of duty , on the one hand, without making it appear as if the customer is a fugitive being chased by the police. Simultaneously would discipline our own party as the owner to collect receivables on a regular basis, scheduled and consistent , on the other side.
Preparation of billing schedule is made in such a way to follow the pattern, age of receivables and the level of few collections in earlier times, so scheduling collection of accounts receivable may vary from one company to another company
Here, I am posting Scheduling Claims Receivable ( Timeline for Receivable Collection) only as a basic guide:
Step-1 (0-15 days) : The collection (if any) or the accounting staff must send a letter that has been pitched simptik to remind the customer that the invoice has matured ( Collection or accounting staff should customer contacts with a "friendly reminder letter". This is intended to let the customer know that the invoice is past due ).
If not ter-realization ...
Step-2 (16-30 days) : Staff already need to contact customer by phone. The relationship is intended by phone to find out about sales and the goods sold, or the possibility of other causes of slow customer payments ( Staff should customer contacts by phone. This phone call is intended to enable the organization and the customer to identify and discuss any problems with the sale or merchandise or to identify a reason for late payment ).
If you have not paid off .....
Step-3 (31-45 days) : Staff should have sent a letter accompanied by a bill of sales files ( Staff should customer contacts with Billing sales letter and its enclosures ).
If you have not paid off .....
Step-4 (46-60 days) : Finance Manager or Financial Controller should have intervened immediately contact the customer by telephone to identify and find out if the customer is facing serious financial problems, as well as offering a way out if possible ( A Manager or Financial Controller should contact the customer by phone again to discusse and find out if the customer has serious financial problems and try to offer a solution base on the figures ).
If you have not paid .............
Step-5 (61-75 days) : Company should send bills again, a second warning ( Company should the customer contacts with Billing Letter 2nd again as a reminder ).
If you have not paid ..............
Step-6 (76-90 days) : Company should menghungi customer with an official letter stating that: further collection action will be handled by a third party (collection agency / attorney). It is intended to provide a final opportunity to customers to meet their obligations (paying off debt) before the billing process submitted to a third party that is intended ( Company should the customer contacts with official-collection-agency (or attorney) letter. This is intended to give the customer one last opportunity to pay the invoice prior to turning over to a collection agent or attorney ).
Note: (0-15) and so was the day after the due date-accounts.
In certain cases, in-house collection is no longer effective to do, so use a  collection agency orattorney  very likely be required. Today, the corporate business-line-based credit (banks, finance / funding and non-financial institutions) have been accustomed to using fixed services agency or attorney, or both, even that has memeiliki division or specific parts that manage billing-even still need to use the services of a collection agency or attorney.
Once past the 90 days , the billing process should have been turned over to a collection agency or attorney. Focus the company had to be transferred to another customer handling. It is definitely a collection agency or attorney will still coordinate with the company. Of course the data accounts and records relating to billing measures that have been done as I have to say at the beginning may be asked to learn.
Because " Timelines for Receivables Collection "I meant only as an example in the collection of accounts receivable schedule. So this post I focuskan on step-step scheduling and billing processes alone, without discussing other aspect. I will post another article specifically about the handling of bad debt from various aspect. Hopefully this can be a useful supplement. As always, any input, so I expect constructive opinion. Or perhaps there who have the experience of the collection of accounts receivable? can be shared here. Please write a comment.

No comments