The Collection Management module streamlines the processing of customer payments by providing an efficient platform for managing the entire payment process. It includes tools to track invoice approval instructions (collection steps), manage customer credit, and track and reconcile payments.

Workflow

The process of collecting a payment begins by incorporating the customer's instructions into their customer profile (Bill-To profile), which includes information such as NET Terms, TAX, Currency, Payment Method, and any other requirements specified by the customer before the payment can be released. These specific steps or instructions are typically documented in the customer's purchase order or contract with their suppliers, and the invoice must adhere to these requirements to be approved for payment. Each customer may have slightly different requirements, such as requiring the supplier to invoice the buyer upon receipt of the product or providing proof of service through a scanned invoice stamped by their own receiving warehouse or signed On-Site service by their calibration department. Some customers may also require suppliers to submit electronic invoices to a web link provided by the buyer (such as an invoice portal) or email them to specific email accounts (such as the AP department). Tracking these subtle differences per customer is crucial to prevent any delays or non-release of payment. The system keeps track of the percentage of completion of the collection steps.

Once an invoice is submitted to the customer and passes validation, the credit days start running. The system automatically handles the credit days and notifies the user of any delay in a due invoice (that is, any unpaid invoice exceeding the NET Terms).

Received payments (such as bank deposits or checks) can be reconciled against the invoice and marked as paid. It's important to note that the system allows for both partial payments for a single invoice and payments for multiple invoices of the same customer. The system keeps track of the remaining balance after each installment payment is made and only marks the invoice as paid when all installments sum up to the invoice total.