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Collections and credit in Accounts receivable

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Important

This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Accounts receivable collections information is managed in one central view, the Microsoft Dynamics AX Collections form. Credit and collections managers can use this central view to manage collections. Collections agents can begin the collections process from customer lists that are generated by using predefined collection criteria, or from the Customers form.

Before you begin to set up or work with collections, you should understand the following concepts:

  • Customer aging snapshots contain aged balance information

  • Collections customer pools help you organize your work

  • Collections agents can have their own customer pools

  • List pages organize collections customers, activities, and cases

  • All collections information for a customer is in one form and you can take action from that form

  • Waive, reinstate, or reverse interest and fees in one step

  • Create write-off transactions in one step

  • Process not sufficient funds (NSF) payments in one step

The following sections describe each concept.

Customer aging snapshots contain aged balance information

An aging snapshot contains the calculated aged balances for a customer at a point in time. This information is displayed on the Collections list page and in the Collections form. An aging snapshot must be created before you can view information on the collections list pages.

For each customer, an aging snapshot contains an aging snapshot header and detail records that correspond to each aging period in the aging period definition.

The aging snapshot header contains the total amount due, credit limit, packing slip amount, sales order amount, number of disputed transactions, and total amount of the disputed transactions for the customer account. All transactions for the customer are included in the calculation of these amounts. The total amount due, credit limit, packing slip amount, and sales order amount are shown in the Credit information FactBox in the Collections form.

For each aging period in the aging period definition, an aging snapshot detail record is created. Each aging snapshot detail record contains the aging period ID and the total amount of the transactions with dates that are in the aging period. Transactions are assigned to an aging period, such as 30 days past due. The date is relative to the Aging as of date that is specified when you create the aging snapshot. This information is shown on the Collections list page and in the Aged balances FactBox in the Collections form.

For more information, see Create an aging snapshot and Customer aging snapshot (form).

Collections customer pools help you organize your work

Customer pools are queries that define a group of customer records that can be displayed and managed for collections or aging processes. Use customer pools to filter information on the Collections, Collections activities, and Collections cases list pages. You also use customer pools to filter the customer accounts that are included when aging snapshots are created.

For more information, see Set up collections and Customer pools (form).

Collections agents can have their own customer pools

By default, Microsoft Dynamics AX users can view all customer information on collections list pages. You can use collections agent records to determine the customer pools that are available to filter information on the collections list pages and in the Collections form.

A collections agent is a person who works with customers to make sure that payments are collected in a timely manner. In Microsoft Dynamics AX, collections agents are workers who are set up as users in the User relations form.

For more information, see Set up collections and Collections agents (form).

List pages organize collections customers, activities, and cases

The following list pages help you organize collections information.

  • Collections – The columns on the list page display customer balances and aged amounts by aging period. This information is stored in an aging snapshot. The aging periods are determined by the aging period definition that is used. The aging period definition is taken from the customer pool, if one was specified for the pool query. If the pool does not have an aging period definition, the default aging period definition that is specified in the Accounts receivable parameters form is used. If no default aging period definition is specified, the first aging period definition in the Aging period definitions form is used.

  • Collections activities – The columns on the list page display activities that are identified as collections activities. These activities are created by using the Collections form. Use activities to track the work that you do related to collections.

  • Collections cases – The columns on the list page display information for cases that have a case category with a case type of Collections.

Note

An aging snapshot must be created before you can view information on these list pages. Information is displayed only for customers for whom an aging snapshot has been created.

The records that are shown on the list page can be additionally restricted, as follows:

  • By default, a Microsoft Dynamics AX user has access to all customers who have an aging snapshot.

  • If customer pools exist, a user must be set up as a collections agent to use the pools to filter information on the collections list pages. Information is limited to the customers who are included in the selected customer pool.

  • If a user is set up as a collections agent, only the pools that are selected for that collections agent are available on the list page. If the Allow agent to view all customer pools check box is selected in the Collections agent form for the collections agent, all pools are available for that agent.

For more information, see Key tasks: Collections.

All collections information for a customer is in one form and you can take action from that form

Use the Collections form to view, manage, and take action on collections information, activities, and cases for a customer.

The upper pane displays transactions for the selected customer. The lower pane displays activities for the customer. You can create collections cases to track collections information for one or more transactions and activities. The information in the upper and lower panes can be filtered by case.

FactBoxes display aged balances and credit limit information for the selected customer. This information is stored in the aging snapshot. If necessary, you can update the aging snapshot with current information.

The Action Pane contains buttons that display related information for the selected customer, case, transaction, or activity. You can also perform common actions such as changing the collections status of a transaction, sending email correspondence through the integration with Microsoft Outlook, reimbursing customers, processing NSF payments, and writing off uncollectible balances.

For more information, see Key tasks: Collections and Collections (form).

Waive, reinstate, or reverse interest and fees in one step

You can waive, reinstate, or reverse complete interest notes, or fees and transaction interest that are a part of interest notes. You can do this from the Collect tab on the Action Pane on the All customers list page by clicking Interest note, Transaction interest, or Fee. For more information, see Waive, reinstate, or reverse interest or fees.

These adjustments affect only interest notes, and the interest and fees that they include. Use the steps in the “Create write-off transactions in one step” section to write off all of the charges that a customer owes.

Create write-off transactions in one step

You can write off bad debts by clicking Write off in the Collections form, and on the Collections, Customers, and Open customer invoices list pages.

When you write off transactions for a customer, all transactions for the customer are automatically marked for settlement. The amount that is written off depends on the net amount of the marked transactions. The write-off transaction is created in a general journal and can contain up to three types of journal lines.

  • The first type of journal line contains the customer write-off entry. If the marked transactions contain multiple combinations of currency code, dimension, and posting profile, a separate journal line is created for each combination.

  • The second type of journal line contains the general ledger write-off entry. If the marked transactions contain multiple combinations of currency code, dimension, and posting profile, a separate journal line is created for each combination.

  • The third type of journal line contains the general ledger write-off information for sales taxes. This journal line is created only if the Separate sales tax check box is selected in the Accounts receivable parameters form. If the marked transactions contain multiple combinations of sales tax payable account, dimension, and sales tax code, a separate journal line is created for each combination.

The write-off transaction is created in the transaction currency.

For more information, see Set up collections, About default entries for write-off transactions, Key tasks: Collections, and Collections (form).

Process not sufficient funds (NSF) payments in one step

You can process NSF payments by clicking NSF payment in the Collections form. When you click this button, the payment is canceled. If an NSF fee applies for the customer, a charges transaction is created in a payment journal. The fee amount is based on the settings for the automatic charges. The automatic charges that apply for NSF payments are specified by the charges group that is selected in the Bank accounts form for the affected bank account.

For more information, see Set up collections, Key tasks: Collections, and Collections (form).