Reminder letters and penalty interest processing

Requirement

Some customers must be reminded to pay open invoices. The penalty interest process is not mandatory, but if a company wants to charge interest it has to be done in a legal way.

M3 solution

The credit management process supported by M3 consists of three or four main activities:

• An itemized monthly statement with a summary of the total debt split into ageing buckets is sent to the accounts payable department at each customer with unpaid invoices.

• The statement is followed by 1-3 dunning or reminder letters. These are only sent to customers with unpaid overdue invoices, according to their payment terms.

• Then if still not paid, the customer debt, with specified invoices is handed over for legal collection.

• A penalty interest invoice, can also be used as part of the collection process.

  There has to be a text on the invoice or the reminder letter that interest will be calculated from due date until payment date.

Configuration guidelines

Program ID	Program name	Description or comment
CRS465	Payment Reminder Rule. Open	Connection with customer master
CRS460	Interest Invoicing Rule. Open	Connection with customer master
CRS610/K	Customer. Open	Connect and activate to applicable rules.
ARS010	Payment Reminder Rule. Enter Text
ARS080	Interest Invoicing Rule. Enter Text
ARS085	Collection. Enter Text
ARS150	Payment Reminder. Open	M3 Proposal with edit and then update
ARS160	Interest Invoice. Open	M3 Proposal with edit and then update
ARS170	Collection. Open Assignment	M3 Proposal with edit and then update