Day-to-day credit control activities

As part of your day-to-day credit control activities you will:

  • Monitor the level of all debt and that of single customers.
  • Remind customers of outstanding invoices.
  • Sanction customers who fail to pay outstanding invoices.
  • Deal with bad customer debt.

The following reports and features can help you stay abreast of customer debt and take appropriate action when needed. Use these tools and actions as part of your own credit control business processes.

Monitoring your customer debt

A number of reports and enquiry screens can help you monitor when transactions are due and when they pass their expected payment date.

Open: Customers > Customer Reports > Credit Control.

Aged Debt reports

Enquiring on a customer's transactions

Use the Credit Control Enquiry Workspace to check your customer's outstanding transactions in real time. This is a quicker way to check individual customer accounts than running a report. This is an excellent way to view customer transaction information when you are speaking with them on the phone.

Open: Workspaces > Sales Ledger > Credit Control

From here, you can check the details of the customer account and outstanding transactions. For example:

Monitoring payment trends

With the Time Taken to Pay Sales Invoices report you can examine the average time it takes a customer to pay their invoices.

Run this regularly and you will spot when the average time a customer takes to pay their invoices starts increasing. While an increased average payment time is not a positive indicator of a problem it could provide an early warning for you to monitor the customer before an oversight becomes a trend.

Motivating your customers to pay

Some customers will take action to pay outstanding invoices when presented with documentation from you detailing the number and value of unpaid invoices.

This could be as simple as a statement listing the outstanding invoices or, for a more formal approach, a debtor letter.

Customer statements

You can generate statements at any time and define the period of time to be covered on them.

Each statement details:

  • Outstanding invoices - the date the transaction was posted and its amount.

    Invoices that have been paid but not yet allocated to a receipt are also listed.

  • Unallocated receipts and credit notes - the date they were posted and the amount.
  • Allocated transactions - the date on which the transaction was posted and its transaction type, but no amount details.

Before generating a statement if you allocate all transactions you will reduce the number of transactions detailed on the statement. That way, the statement will provide a clear picture of the number, and value, of outstanding invoices.

You can also set up Sage 200 to:

  • Print or email statements. This depends on the layout chosen on the customer's account.

  • Choose which transactions are included on a statement. This is set in the Customer Settings.
  • Choose how transactions are aged. This is set on the customer settings.

Debtor letters

When you generate a debtor letter Sage 200 automatically selects which template to use based on the due date period in which the oldest outstanding transaction falls. The details of all other outstanding transactions are also added to the letter so that the customer can clearly see what is owed.

Before generating debtor letters allocate any outstanding transactions.

Sanctioning non-paying customers

When a customer's debt remains unpaid you may need to take punitive actions. Within Sage 200 you can:

  • Reduce the customer's credit limit.
  • Reduce or remove the payment terms for future purchases.
  • Place their account on hold.

You could tie any or all of these actions to the production of your debtor letters and amend the text of the debtor letter to warn the customer of the impending sanction.

When all else fails

When it becomes clear that a customer cannot or will not pay their outstanding invoices you need to take appropriate actions.

See Dealing with customer bad debt.

What do you want to do?