Before you can use the collections module you must use the Delinquent codes screen to define the reasons customers do not pay an invoice. These reasons will be applied to each collections instance and will follow through to the reporting.
AR > Collections > Delinquent Codes
To Enter a Delinquent Code
- Go to AR > Collections > Delinquent Codes
- Delinquent Code – can be up to 20 characters. This will be used on the Unpaid Collections screen to indicate why an invoice is not being paid in a timely manner.
- Type - Most reasons for non-payment of invoices are due to a problem with the customer (Their fault) or a problem with the service or goods provided (Our Fault). Use this field to indicate if the delinquent code represents a customer problem or if the fault lies with your organization
- Description - The delinquent code description can be up to 80 characters.
- Press the Save icon on the toolbar to commit the creation.
This process will create the delinquency types that you will use to categorize for management and reporting purposes.