Accounts receivable accounting has four important areas of activity. In these, you deal extensively with the posting of receivables and credit notes from deliveries and services, with the monitoring of individual incoming payments, with dunning and debt collection, and with the actual creditworthiness of each customer in your company. This is also often referred to as debtor scoring. Accounts receivable accounting ensures that everything is tracked and documented, from the cambodia rcs data actual invoicing to the receipt of payment, and initiates dunning and debt collection if payment is not made.
Receivables management
If a customer buys a product from your company, they will then receive an invoice. This is sent to the customer by accounts receivable. The customer now has the option of paying the invoice amount to your company within a certain predefined payment period, for example by direct debit or bank transfer. The invoice to the customer is also often referred to as a receivable (accounts receivable management). The outstanding receivables are checked daily. This also serves as preparatory work for dunning.
Dunning process
When it comes to dunning, a distinction is made between out-of-court and judicial dunning. In the out-of-court dunning process, an attempt is first made to collect the invoice amount that the debtor (customer) still owes internally. This is usually done using so-called dunning levels. With each dunning level, the customer is reminded again to settle the outstanding payment. Each company decides for itself how many dunning levels there are before judicial dunning takes place.