Securing cash flow
Every company is at one point confronted with customers who are reluctant to pay. These delays cause a multitude of problems, such as high accounts receivable, a cash flow slowdown and overall harm to the final profit. Therefore, companies are now rapidly setting up credit limit controls in order to diminish the number of late or unpaid invoices. As the saying goes: prevention is better than cure.
Credit Limit Control
BESTMIX ERP supports this proactive control method by allowing users to set up the “credit limit control” and “days of grace” based on personal preferences. This way, the confirmation of sales orders is blocked when either credit limits are surpassed or when a customer has more outstanding invoices than allowed.
Our software allows you to:
- Set up credit limits for all customers or a limited set. Additionally, deliveries can be put on hold.
- Choose to check the remaining credit limit against: the customers’ balance, the customers’ balance and all delivered orders, the customers’ balance and all delivered and undelivered orders
- Set up a number of “days of grace”. This feature allows orders to be blocked even if the customer is within the credit limit but has unpaid invoices that exceed the time limit.
The process
The following example illustrates this feature:
- A sales responsible creates a new sales order. When the order is confirmed, an error pops up because the credit limit has been surpassed by X-EUR. The order is now blocked and cannot be processed further.
- The user, responsible for credit control, sees the blocked order in the workspace under “credit exceeded orders”.
- The same user can now determine whether to release the orders or keep them blocked. In BESTMIX ERP, an overview of all blocked orders can be obtained with one simple click. With the proper information at hand, the responsible staff member can now decide to continue or suspend the sales-order process.
- To support the unblocking decision, users consult an unambiguous overview of the customers’ balances.
- The released order automatically enters the normal workflow (production, shipment, delivery, …)
As most sectors are dealing with a rapidly increasing number of outstanding invoices, organisations are aiming to block the sales-order process for certain customers. BESTMIX ERP offers a structured, flexible and user-friendly feature to accommodate this need by offering assistance in controlling the credit limit and subsequently in securing a healthy cash flow.
Personalisation
See the current personalisation segmentation scoring or apply a manual segmentation to test