@Mickey Larson26 this is our collections process. We sell through distributors, almost all of whom we've known for decades. Non-payment issues are administrative 99% of the time and our process reflects that.
Processes are a struggle for us. This one could probably be tightened up and improved so I welcome feedback.
- Once a month, run an accounts receivable aged invoice report for any invoices that are 30 days past due.
- For invoices 30-59 days past due, email invoice to customer as a second notice. Resend a statement or any open credits to the customer.
- For invoices 60-75 days past due, pull corresponding purchase order, sales order, and shipping documents. Find out why the invoice hasn’t been paid. If the order hasn’t been paid for a simple reason (e.g. need proof of delivery), resolve that issue. If it’s more complicated (e.g. claiming non-conformance), elevate to sales manager or director of finance and administration.
- For invoices 75+ days due, director of finance and admin needs to decide to continue pursuing payment through contacting the customer, placing customer on credit hold, and writing off the invoice. Decision needs to be reassessed every month.