Debt management refers to the systematic monitoring and management of a company's receivables from its customers. This includes, in particular, keeping track of outstanding receivables, their due dates and their respective payment status.
What is receivables management?
Receivables arise, for example, when a company has provided a delivery or service and issued an invoice that has not yet been paid in full.
Receivables management looks at these receivables from their creation to their settlement and creates transparency as to which amounts are still outstanding, due or already paid.
Which areas are part of receivables management?
Key areas include, in particular:
- Overview of open customer receivables
- Monitoring of due dates and payment status
- Allocation and consideration of incoming payments
- Detection of overdue receivables
- Transition to Dunning process if claims are not settled on time
Receivables management and Accounts receivable - what is the difference?
The Debtors ledger records accounts receivable, sales invoices and incoming payments in the bookkeeping system.
Credit management uses this information to monitor receivables and their payment status.
In short: The Accounts receivable documents claims - receivables management monitors their open and due balance.
open items and Dunning process – what is the difference between them?
Outstanding Items (OPOS) refer to unsettled receivables or payables. They thus provide important information about the current volume of receivables.
The Revenue Service relates in particular to the processing of due or overdue receivables and is thus a sub-area of receivables management.
