Dynamics NAV Receivable Credit Management

Want to know how to manage receivables and collections management for your customers? Theo explained a few basic features for this in his last week’s blog, this blog goes more in to some details. Dynamics NAV has a solution in the core product that pulls together all of the relevant information accessible from one place to help.

Here are the main functions it’s designed to make available:

  1. Customer Credit Limit

  2. Customer Balance

  3. Amount over/under the credit limit

  4. Customer Contact

  5. Current status of the customer, are they blocked for shipping or invoicing

  6. When the last time the customer made a payment was and how much the payment was for

  7. Aging open entries for the customer in: current (Not Yet Due), 1-30, 31-60, and Over 60 days

  8. Ability to enter comments related to the customer and collection efforts

  9. Review the status of open Sales Order and the total amount of outstanding  sales and service orders

  10. Sales line detail to understand the current and outstanding shipping and invoicing open on sales orders

  11. Sales History for the customer both outstanding and posted

  12. Issued Reminders

  13. Issued Finance Charge Memos

  14. Customer profitability and sales volume by period, year, compared to last year and cumulative sales

  15. Review open and closed Customer Ledger Entries and drill into specific documents

All of the information you need to understand the background of the customer  can be accessed from one place so you can make appropriate collections decisions and to track your activities related to collections.

In the Financial Management > Receivables menu, there is an option under Tasks called Credit Management.

This page assists you understanding the credit and balance situation with your customers.

We recommend filtering on Balance Due ($) <>0. This will filter out any customers who do not have a balance.

You may click on Customer List – Credit Management in blue in the upper left hand corner of the screen and select Save View As from the drop down menu that appears to save a filtered view on only customers with a balance. This will allow you to quickly see only customers who have balances. Adding the view makes this available to you in your Role Center which makes it more readily accessible.

You can then change the Name this saved view will show under and select from the Activity Group where you want the saved view to show. We recommend Home.

Here, we’ve named with AR Customer with Balances and selected for it to show in Home.

The system will prompt to restart the  application to make the change. Click Yes.

The saved view now displays. In this case, it’s showing on Home in our Role Center.

Let’s look at an example, customer 30000, John Haddock who has a Credit Limit ($) of $350,000 but a Balance Due ($) of $542,167.20 and a Difference of –191917.00.

If we look at the Credit Information factbox icon the right hand side of the screen, we can see the contact for the customer. The Payment Terms Code is 14 DAYS. The Blocked field in the same factbox indicates this customer has not yet been put on hold for shipping or invoicing. We can see that no payments have ever been made or we would see a Latest Payment Date and Latest Payment Amount. Under the Aging section, $542,167.00, or the total outstanding amount they owe is over 60 days old.

We can see here, they are over their credit limit, haven’t made a payment ever and are over 60 days past due on the whole amount when they should be making payment in 14 days. We can drill into any of the hyperlinks in blue in the factboxes to review additional detail.

If we click on the Navigate tab at the top of the ribbon, and click on Comments, we can enter comments related to our collection efforts. The comments will show in the factbox called Comment Sheet on the right hand side of the screen. Note that these comments are the same as the comments you see on the customer card. They are related to the customer, not specifically to your collection efforts.

Also on the Navigate tab, you can review the Ledger Entries for the customer or the Issued Documents like Issued Reminders and Issued Finance Charges as well as customer Contacts  and Statistics.

Continuing with a review of the factboxes, the Sales Order Status factbox displays the Sales Orders currently in process along with the Status and Open Amount.

If we scroll down on the factboxes, we can also see that the Sales Order Status  factbox shows us totals for the Open Amounts including Total, On Hold, and Pending Approval.

Below that is the Sales Line Status factbox. This shows us the details of sales lines for open sales documents so we can see in more detail what what ordered, shipped and invoiced and what remains to be shipped and invoiced.

The Sales Order Status and Sales Line Status show us that the customer still has additional sales orders for $10,820.18 that are in process. We have additional information now so we can if it’s time yet to set the customer to be blocked from shipping or invoicing any additional sales orders so you won’t let them run up their outstanding balance any further before you require them to make some payment on already outstanding invoices.

Next is the Customer Statistics factbox which provides some of the information we’ve seen above but also shipped not invoices totals for both sales and service orders.

They are going to owe $555,386,44 is we allow the sales and service orders in process to proceed. A half a million dollars is a lot to owe for a new customer who is overdue by at least 60 days and hasn’t paid anything yet.

The Statistics option on Navigate tab on the the ribbon at the top of the screen offers more information for us to understand the profitability of the customer which can be helpful in making collection decisions.

Here we see that they appear to be a pretty profitable customer. Maybe we should follow up on a request for payment but not be too aggressive. If we can get them to get more current on payment, they are a desirable customer.

#Collections #AccountsReceivable #Credit #DynamicsNAV #Receivables #CreditManagement

Microsoft Gold Partner Logo_edited.png
  • LinkedIn Social Icon
  • Twitter Social Icon
  • Facebook Social Icon
  • YouTube Social  Icon

Austin  |  Dallas  |  Houston  |  New Orleans  |  Nashville