The aging balance helps to monitor the situation of accounts receivable based on their seniority compared to their due date. It is divided into several tranches. For example, non-overdue receivables and receivables due between 1 and 30 days and between 31 and 60 days ... etc. It can be applied to the entire accounts receivable or can be set by customer or group of customers.
Average payment duration recorded on the customer. It is calculated based on the effective date of payment of invoices by the customer compared to their issuance date. It differs from the DSO (days of sales invoiced and not yet paid) which is calculated with outstanding invoices.
The contact for collection is the customer's main contact for all aspects of debt management.
Does the customer account have a contact identified as a « contact for collection »? (Yes/No) What is the contact for collection?
The cost of credit is the cost for the seller of the credit granted to a client. It is different for each company and depends on the structure of the company's liabilities and costs of each item (equity, debt ... etc.). It is necessary to know this cost for his company to set up the payment terms and the rate of late payment penalties to use.
The credit limit represents the cimmitment maximum granted to a customer. Its purpose is to limit the amount receivableto a level consistent with the customer's financial capacity. How to manage credit limit?
When a company makes a sale by granting a delay of payment to the buyer, she is not certain to be paid while she has already delivered the equipment ordered or performed the service. Credit risk represents the sum of receivables issued and not yet paid less those secured (credit insurance, bank guarantees ... etc.)
A dispute is a reason given by the customer to justify the non-payment of an invoice. It may be of several kinds: commercial (pricing error on the bill), quality (the delivered material does not work properly) or administrative (error in the invoice wording ...).
Days Sales Outstanding: number of days of sales in the accounts receivable. The DSO is a key indicator in credit management and should be as low as possible. It varies depending on the payment terms granted to customers and bills collection performance.
Contractual date where an invoice must be paid by the customer. This date is defined when the invoice is issued, depending on the payment term applied. It is important that this date is correct to avoid any dispute justifying non-payment of the invoice.
Each item (invoice, credit note, payment unaffected, debit note ...) uploaded in My DSO Manager must be associated with an internal item type of My DSO Manager. This type depends on the accounting nature of the item.
There are 6 item types in My DSO Manager:
FAC / Invoice: invoices. Debit items only
AVO / Credit note: credit notes. Credit items only
RGL / Payment: unallocated payments. Credit items only
ODI / Miscellaneous transaction: miscellaneous operations(OD). Debit or credit items
TRT / Draft: items in transit (drafts, bill of exchange). Debit only
DPA / Downpayment request: payment requests. These are memorandum items (for information) without accounting value. Debit items only
Contractual date on which an invoice must be paid by the customer. It's defined when the invoice is issued based on the payment term granted. It's important that it is correct to avoid any dispute justifying non-payment of the invoice.
A specific action allows you to exclude the selected bills from the collection scenario and to perform another action. For example, if the customer agrees to pay a bill at a time D, it is useful to set a specific action « promise to pay follow up » on this bill at D + 2 days. When an invoice is qualified in dispute, a specific action « dispute tracking » is automatically programmed by My DSO Manager to take this bill out of collection until dispute is resolved.
A statement of account is a summary document of all accounting records of a customer account. It contains all invoices, credit notes and other items not settled yet. This document informs the client of the bills he has to pay.
The status allows to qualify items and assign them temporarily in a category.
For example, if a customer confirms a payment, the relevant invoices will be qualified with a status of « Promise to pay ».
Status - Name : Name of status defined on My DSO Manager
Status - Comment : Explanatory comment linked to debt status.
Status - Date : Date on which last item status was indicated.
Status - Author : Author of item status, having qualified it.
The To do list is a central tool in My DSO Manager. It contains all the collection actions to be made. There can be several sorts of actions: scenario actions, specific actions or automatic actions. The To do list allows the collector to organize its priorities and its activity into My DSO Manager.