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  11. Automated AR collection

Automated AR collection

Automated AR Collection cycles can be created with batch numbers to identify each cycle. The cycle can have a biller list or a range of billing accounts included. The payment details of the cycle can be maintained, including adding/removing  billers & transactions. Billers must be linked to the collection method in the collection cycle, other wise they cant be included in the collection cycle.

Create collection cycle

  1. In the menu, expand Base Modules > Distribution > Debtors & Claims > Accounts Receivable > Entry  and then double-click Debtor Auto Collection. ARW005 Work with Collection Cycle panel lists the active collection cycles.
View the available options on this panel
Option Description
Work with Allows you to access a collection cycle and view the outstanding invoices for payment. 
Delete Allows you to delete a batch that is closed (currently not in use).
Unlock batch Unlocks a batch that is in use. You can work with unlocked batches only. 
  1. Click Add to create a new cycle. ARW030 Automated AR Collection panel appears in Add mode.
View the fields on this panel
Field Description
Batch The batch number is a system generated ID for the collection cycle. It is initially masked as ‘********’  and is assigned on confirmation. The batch will remain in ‘U’ status until the cycle is completed. 
Period Period must be valid AR accounting period. The system will default it to the current AR period.
Collection date Collection date would default to today’s date.
Company  This is the company the automated collection is being run for.
Currency Currency of the transaction. Selection will be based on this currency. 
Collection method This is the code for the automatic AR collection that is used as the basis for customer selection to be paid by automatic collection. There will be different codes for different system configurations. For automatic collection using SEPA, enter the collection method for SEPA as defined in control file TMSDS/CM-CLMT.
Company bank

Indicate the bank to which the payment received is to be deposited. Bank codes can be set up for various Payment types such as credit card payments (with bank codes for every type of credit card), foreign currency payments, cash with orders etc. This then allows for the printing of bank deposit slips by bank code/payment type.  A default bank code can be established in TMSAR/BK-DBKCD. 

Company bank codes are established in TMSAR/BK-BKCD.  The bank company and currency will also be validated against this control file.
Payment type The Payment type for auto collection as specified in TMSAR/BK-PAYTD.
Due date Account due dates. ‘From due date’ is used as a selection criteria to exclude old uncollected debts that will subsequently go to bad debts. 
O/S Amount This is the outstanding amount range for automatic collection. Collection limit by collection method can be setup in TMSDS/CM-CLLM.
Debtor class Debtor classification can be used as selection criteria as well, if required. 
Classification type & code Customer Classification type & the relevant class code can be used as selection criteria as well, if required. 
Billing number Billing number or a range of billing numbers can be used in the selection. However if the Biller list is populated (via function Biller list) then the biller number range does not apply.
Collection sequence Collection sequence corresponds to the mandate sequence: 0=oneoff, 1=first, 2=recurring, 3=final, 4=close. The bank may take extra days to process D/D, so ARW030 needs to be run 5 days before payment due date for seq 0 to 1 and 2 days before payment due date for seq 2 to 4.
  1. Enter the above selection criteria for the collection cycle.
  2. If required click function Biller list to enter a list of billing codes to be included in the collection cycle. 
Note Entry of billers via Biller list will override the biller range. Biller currency & the collection method must be the same as the collection cycle currency & collection method.
  1. Click OK. The collection cycle gets created and the batch number (cycle ID) is assigned. The selected invoices are displayed. Transactions included in the collection cycle will be locked for any payment activity via AR Cash entry (ARE005).

Work with collection cycle

  1. In the menu, expand Base Modules > Distribution > Debtors & Claims > Accounts Receivable > Entry  and then double-click Debtor Auto Collection. ARW005 Work with Collection Cycle panel appears. 
  2. Select the cycle and click option Work with. ARW030C Automated AR Collection displays all the billers in the cycle.
View available options on this panel
Option Description
Detail Allows user to maintain collections for the biller.
Delete This will remove the biller and all the related collections.
Letter This will send a collection request to the spool file for the selected biller.
Customer Access customer maintenance to link collection method for a customer.
CC payment The result  of a credit card collection can be viewed by this option.
View available functions on this panel
Function Description
Add Use this function to include collection for a biller not listed.The system will first ask for the biller, then allow the user to select particular transactions from the list of outstanding transactions. Transactions locked by other active collection cycles will be highlighted.
Summary This will print a report summarising the selected invoices for the collection cycle.
Detail This will print a detailed report, similar to the summary but at a transaction level.
Letter Letter will send the collection request to the spool file for all the billers in the cycle.
Finalise

Finalise will trigger the following.

  • Generate collection advice to the spool file
  • Email collection advice if contact email address exists. If no contact email address exists then print/mail collection advice
  • Create interface file with the direct debit details for the bank to collect the outstanding amount
  • Process credit card collections
  • Generate AR transactions for posting to GL as normal cash posting at end-of-day or end-of-month process.
  • Change the status of the collection cycle to C=closed.
  • The AR transactions would be unlocked for any future collection activity.
Note The user is allowed to change the period, which is validated against the AR accounting period.

Print selected invoice summary

  1. In the menu, expand Base Modules > Distribution > Debtors & Claims > Accounts Receivable > Entry  and then double-click Debtor Auto Collection. ARW005 Work with Collection Cycle panel appears. 
  2. Select the cycle and click option Work with. ARW030C Automated AR Collection displays all the billers in the cycle.
  3. Click function Summary.

Print email collection advice

  1. In the menu, expand Base Modules > Distribution > Debtors & Claims > Accounts Receivable > Entry  and then double-click Debtor Auto Collection. ARW005 Work with Collection Cycle panel appears. 
  2. Select the cycle and click option Work with. ARW030C Automated AR Collection displays all the billers in the cycle.
  3. Click Letter to send the collection request to the spool file.

Finalise collection run

  1. In the menu, expand Base Modules > Distribution > Debtors & Claims > Accounts Receivable > Entry  and then double-click Debtor Auto Collection. ARW005 Work with Collection Cycle panel appears. 
  2. Select the cycle and click option Work with. ARW030 Automated AR Collection displays all the selected invoices for payment.
  3. Click Finalise. 
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