How to improve your cash flow with Dynamics GP Collections Management

Visit Website View Our Posts

Years ago I used to do some collecting for a finance company.  I had to use manual ledger cards to track notes of my collection efforts with many different customers and it was a pain.  I wish I could have used an automated collection system like Microsoft Dynamics GP offers with its Collections Management module.  It would have made me a more effective collector which in turn would have improved my company's cash flow.

Each day I would pull out the pile of collection ledger cards from a collections box.  This was pretty clunky and didn't offer much flexibility.  With Collections Management I could have created and saved different electronic queries of my customers based on what I needed to focus on that day.  For example, I could have pulled up a list of all the customers that were 60+ days past due, that were past due more than $1000.00.  I could then have acted upon that list one by one by opening up a GP Collections window that had all the important customer information on an easy to read window.  This would have made my job of follow-up much easier and given me the best bang for my buck that day.  Or, I could have pulled up other queries that met my needs.

Next I would take one ledger card and read the prior notes which were in various collectors' scribble.  I would call and speak with the customer, write my notes on the ledger card, and then put the card back in the collections box.  It was hard to keep track of all my activities and required follow-ups.  Collections Management would have allowed me to automate this process by writing electronic notes tracked by date and collector.  Plus, I could have assigned a follow-up date and action which would have prompted me with a GP reminder when I needed to follow-up.  This would have made me much more efficient and I wouldn't forget to follow-up with the customer.

There was a day when I wanted to write a bunch of letters to those customers that were 30 days past due.  That was not an easy task as it was largely manual.  Collections Management would have allowed me to pull up all customers in my "30 days past due" query and automatically perform a mail merge into an effective letter I had created previously.  Then it would have automatically assigned another follow-up date so I could automatically be "tickled" (GP Reminder) to follow up when needed.

I used to spend more time managing the process with the ledger cards and it reduced my collections effectiveness.  If you are using a manual collections process like I was, look at this module closely - it offers great functionality to automate your collections, catch any notes, promise to pays - all of which could help your company's cash flow significantly. I've listed some of the more useful features of Dynamics GP Collections Management below.

- Automated Customized Collection Notices: Create overdue notices and collection reminder templates with Word which can be automatically populated for the correct set of customers the letter is targeted for with information from Dynamics GP.

- Tie-in to Receivables management: Integration with A/R removes customers who have paid and adds any customers that have any newly overdue invoices.

- Credit and Collections Team:  The collections responsibility can be distributed among several credit and collection agents and managers by assigning different customers to them.

- Track A/R by Credit Manager/ Collections Team:  Excel Reports are available that help track accounts receivable by Credit manager (in addition to by customer) to be able assess performance of your various collections agents/ teams.

If you want to know more about Collections Management, email Ignify - a top notch, Gold Certified Microsoft Dynamics GP partner at [email protected]

By Tod Heath of Ignify - Northern California Microsoft Dynamics GP Partner

1 thought on “How to improve your cash flow with Dynamics GP Collections Management”

  1. Great Points on a rarely implemented module phase one. I believe it is a great time to remind our Microsoft Dynamics GP customers of this module! Very helpful when you need to collect on every account possible ~ and most importantly ~ track the conversations, send letters, and reprint invoices!

Leave a Comment

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Show Buttons
Hide Buttons