Table of Content
Objective and Scope
The purpose of this document is to have a detailed procedure on how to manage invoices overdue since more than 90 days.
This operating procedure (OP) applies to all region with FSCM implementation and managed in PI1, PF1 and WP1 systems.
Roles and Responsibilities
The mission of the Credit Collection team is to contribute to reduce the delay DSO through outbound communications with 3rd party Customers in their native language (if covered by the Collections team) based on the procedures for Dunning, Collections and Dispute management agreed upon with Credit Management.
1. Description
Activities
Identification and extraction of items older than 90 days must be done with the following frequency:
- In the beginning of each quarter-end;
- In the beginning of November for the annual closure.
The extraction is performed through BW Analysis Query "Credit Management Aged Balance", displaying the amounts by GBU and indicating the correspondent Credit Manager and Collector.
The extraction is shared with the Credit Management team through an Excel file stored in Google Drive.
2. Next actions
The file is shared with the Credit Management Team that then will analyse each amount and define and implement the best possible action or solution (re-contact the customer, agree on a payment plan or liaise with Business to agree on a different approach).