Understand the usage of Accounts Receivable within CRM.COM

Business Requirement

Company ZX allows its customers to settle their debt via Direct Debit payments.
A file with all Direct Debit payments is received once a week from the bank.

• File provides both the account and the bill, for which the payment is made against
  • If the bill number is not available but the account number is, the payment will be allocated on the account using FIFO. 
  • If the bill number is available, the payment will be allocated on the specific bill of the account. 
  • If neither the bill number nor the account number is recognized then the payment will be placed in Company's ZX system account for investigation and further manual processing

CRM.COM Solution

Payments of unidentified accounts should be moved to the company's Suspense account

• Configuration
  • Accounts Receivable Definition
    • Allocation Principle: Set allocation principle to FIFO & Against Item 
    • System Accounts: Create a Suspense Account
• Other
  • Direct Debit File import:
    • The import of the file should include logic, to move unidentified account/bill payments to the company's suspense account.
• Process
  • Daily process for Back Office personnel
    • Via Financial Transaction page find all Payments in the Suspense account. 
    • Access the data entry page of each Payment and use action MOVE PAYMENT to move the payment to the correct customer account.

Business Requirement

Company ZX provides the option to its customers to either buy or rent the equipment required when signing up to a subscription.
Customers have the option to get the bill at the end of the month along with their recurring subscription fee, but in many occasions they would like to have the invoice at the time of the purchase. The invoice will include both the monthly fee and the physical goods that have been bought.

CRM.COM Solution

• Setup
  • Each customer of Company ZX should have an Accounts Receivable.
  • Subscribed channels added on a Subscription
  • Any equipment bought by the customer would be added on a Job
  • Job and Subscription would be linked with the customer's account
    
    
• Process
  • Issuing a Bill
    • Agent should access customer's Accounts Receivable data entry page
    • Action: BILL ACCOUNT
      • If the customer has been billed till the 1st of the next month then the agent will set the following information
      • Bill As Of Date = 1st of the following month (equal to the Last date that he is already billed for)
      • Execute Up to Step = Formatting
      • Submit the action
    • The bill created will include:
      • Monthly subscription fee (Via Subscription billing)
      • Physical Goods (Via Job Billing)
    • The agent can directly send the bill to the customer by using COMMUNICATE BILL action via the Bill screen

Business Scenario

Company ZX has issued 2 Invoices for Mr. Black.

• 1st invoice was issued and posted in April with due date 15 May. 
• 2nd invoice was issued and posted in May with due date 15 June. 
• Mr Black made a payment on the 1st of June covering the amount of the 1st invoice 
• Mr Black requested an overview of his account.

CRM.COM Calculations

Account Overview

• Balance = (1st Invoice + 2nd Invoice) - (1st payment)
  • (100 + 200 ) - 100 = 200
• Outstanding Amount= Max(((1st Invoice + 2nd Invoice) - (1st payment)),0)
  • Max ((100 + 200 ) - 100),0) = 200
    
    

Business Scenario

Company ZX has issued 2 Invoices for Mr. Jones.

• 1st invoice was issued and posted in April with due date 15 May. 
• 2nd invoice was issued and posted in May with due date 15 June. 
• Mr Jones made a payment on the 1st of June covering the amount of both invoices via Direct Debit,
• His wife also paid both invoices, using cash
• Mr Jones requested an overview of his account
   

CRM.COM Calculations

Account Overview

• Balance = (1st Invoice + 2nd Invoice) - (DD payment+Cash Payment)
  • (100 + 200 ) - (300+300) = -300
• Outstanding Amount= Max(((1st Invoice + 2nd Invoice) - (1st payment)),0)
  • Max (((100 + 200 ) - (300+300)),0) =0

Business Requirement

Company ZX assigns a Credit Rating to each of its customers, based on evaluations made by Q Rating Agency. There are 3 different Credit Rating:

• A: high certainty of meeting the debt obligations
• B: slight issues with debt obligations
• C: most probably be unable to meet his/her debt obligations. 

If a customer has Credit Rating: "C" then the process followed to activate the account differs to a customer with Credit Rating: "A".
Check the example below on Suspending and Reactivating Accounts Receivable

In addition any invoices issued are always due on the 15th of the next month, but agents have the flexibility to bring the Due Date of invoices on specific accounts any date between the 1st and 15th of the next month.

CRM.COM Solution

• Configuration:
  • Accounts Receivable Definition
    • Credit Ratings:
      • There will be 3 available Credit Ratings with the respective amounts
        • A: Unlimited
        • B: 500
        • C: 0
    • Credit Rating Rules: 
      • Due Date:15th of the next month
      • Proximity Range will be defined as - 14.
• Process
  • On creating new accounts:
    • User will select the Credit Rating applicable to the customer
    • Set the proximity range accordingly. i.e If the due date should be set to the 5th of the upcoming month then the Proximity will be set to -10

Business Requirement

Company ZX assigns a Credit Rating to each of its customers, based on evaluations made by Q Rating Agency. There are 3 different Credit Rating:

• A: no likelihood of not meeting the debt obligations
• B: slight issues with debt obligations
• C: most probably be unable to meet his/her debt obligations. 

If the account has Credit Rating:"C" then the customer is not allowed to have a new subscription created for him till a down-payment is made of 500 Euros. Once the payment is made in the account then the customer is allowed to proceed with a new Subscription.

CRM.COM Solution

• Configuration:
  • Accounts Receivable Definition
    • Credit Ratings:
      • There will be 3 available Credit Ratings with the respective amounts
        • A: Unlimited
        • B: 500
        • C: 0
    • Credit Rating Rules: 
      • Due Date:15th of the next month
      • Proximity Range will be defined as - 14.
• Process
  • Creating new accounts:
    • A new account will be created once Credit Rating stats are provided by Q Rating Agency.
    • Customers with Low credit rating will have an account created with Credit Rating C and therefore a maximum amount set to 0
    • User should directly Suspend the account; using action "Suspend Account" from the data entry page
    • When the customer makes payment of 500 euro
      • BackOffice user will update the account to Active by using action: "Reactivate Account" from the data entry page.
      • Backoffice user will proceed with creating a new Subscription and linking it to the account
    • Note that Subscriptions cannot be created for accounts that are Suspended. Therefore even if a call centre agent tries to create a subscription for the customer he will not be allowed to do so.