An Essential guide to getting paid

1. Identify billing customer

If the customer has an account, proceed to 4. Order processing and invoicing
If the customer does not have an account, proceed to 2. Process new account appolication form

2. Process new account application form

Send new account application form to the customer on headed paper
Once the account application form has been filled in by the customer, credit check the customer
If the credit check produces a good credit rating, set an account credit limit
If the credit check shows that the customer is not credit worthy, inform the relevant sales team and make a recommendation (ie prepayment)
Once approved by credit control, move to opening new account

3. Open new account

Notify the sales department with the account number and credit limit
Place the booking on the advertisement booking system

4. Order processing and invoicing

On receipt of a written order confirmation:

Confirm the customer purchase order number, the billing customer and address
Receive signed confirmation back from the customer
Check that enough credit is available on the account
If there is not enough credit available on the account, inform credit control who will authorise or decline the order
Place the order on the advertisement booking system
Invoices should be produced on the publication date of each relevant magazine, using the following procedure:
Print invoices
Post to the customer account
Send invoices out (ensure that COIs are attached to invoices or sent separately at earliest convenience)
Send monthly statement

5. Collection

Credit control review all current and overdue invoices on the account with customer

On receipt of payment:

Allocate payment
Clear all relevant invoices from account
If invoices remain unpaid, go to Identify disputes below

Identify disputes:

Credit control to take disputes to the relevant magazine/department/sales person
If the dispute is not valid pass claim back to the customer with backup information

If the dispute is valid take the following steps to ensure timely payment:

Produce credit note application form
Send to the relevant magazine/department for signature
Send application back to credit control to process a credit note

Following review, credit control to confirm that those invoices not in dispute will be paid within agreed payment terms

If no dispute, but invoice has not been paid, credit control should take following action:

Despatch collection letter (minimum 1 per month)
Contact customer by phone (minimum 1 per month)
Contact relevant magazine/department and ask them to contact the customer
Place cutomer's account on stop - and pull future ads
Pass account to solicitors/debt collectors for further action

If payment received, review account again as per first step under 5. Collection

6. Reporting

Purpose:

Informs the company of disputes and issues related to credit control

Focus

Tracking of cash collection performance against targets
Analysis of overdue and disputed invoices

Types:

Credit control monthly report:

Cash collection performance for the month as per targets
Outstanding disputes
How many credit notes produced per month?
Main reasons for raising credit notes
Problem agencies
Liquidations