08. AR and Bad Debt
Provides tracking and management of all outstanding buyer and client obligations including aging, collection activities, write-off processing, and analytical reporting.
08. AR & Bad Debt Productboard component link
08.01. Receivables Tracking and Aging
Provides tracking and monitoring of all outstanding and future buyer and client obligations across the organization with flexible search and analysis capabilities.
08.01.01. Real-time AR visibility — Provides accounting representatives with immediate access to current and future AR balances and status for all clients and bookings they manage. AR reporting includes current and future receivables.
08.01.02. Dynamic aging reporting — Groups receivables into user-defined aging buckets to support collections and reserve calculations.
08.01.03. Cross-departmental search capabilities — Enables search and visibility across all departments to support flywheel opportunities and comprehensive client relationship management.
08.01.04. Dynamic sorting capabilities — Provides flexible sorting and filtering of AR information by multiple criteria including agent, client, department, aging, and amount.
08.01.05. Payment history tracking — Accesses complete payment history for each receivable item, enabling analysis of payment patterns and client behavior.
08.01.06. Automated reserve calculations — Calculates Current Expected Credit Loss (CECL) based on receivables aging.
08.02. Collection Management
Facilitates active collection efforts through systematic communication and tracking capabilities with automated follow-up processes.
08.02.01. Direct communication enabling — Enables direct communication from AR line items to agents and assistants, streamlining collection coordination and information sharing.
08.02.02. Verification status tracking — Tracks verification status for each AR item (Verified, Unverified, TBD) to support collection prioritization and revenue recognition coordination. Write-off is a separate tag from verified so that service performance can be separated from write-off status.
08.02.03. Original invoice access — Provides access to original invoices for redistribution to buyers, clients, or participants when follow-up or clarification is needed.
08.02.04. Automated follow-up — Implements systematic follow-up processes for overdue receivables, posting information to client and buyer portals and generating automatic reminders.
08.02.05. Follow-up date tracking — Tracks the date of last follow-up activity for each AR line item to ensure systematic collection efforts and appropriate timing of subsequent follow-ups.
08.02.06. Collection activity management — Manages all collection activities with audit trails, documenting efforts made and results achieved for each receivable item.
08.03. Write-off Processing
Manages the complete workflow for processing receivables write-offs when collection efforts are unsuccessful, including approval workflows and recovery handling.
08.03.01. Write-off request initiation — Enables accounting representatives to initiate write-off requests directly from the system and agents to initiate them from their CRMs, streamlining the approval process and ensuring proper documentation.
08.03.02. Dual approval workflow — Implements required dual approval process involving both agent group and finance group to ensure appropriate authorization for write-off decisions.
08.03.03. Documentation maintenance — Maintains documentation of write-off reasons, approvals, and supporting information for audit and compliance purposes.
08.03.04. History preservation — Preserves complete write-off history for future reference, trend analysis, and potential recovery efforts.
08.03.05. Recovery handling — Handles recovery of previously written-off amounts when payments are subsequently received, properly crediting recovered amounts through Settlement calculations.
08.04. Reporting and Analysis
Provides reporting capabilities to support receivables management and analysis activities with integration to business intelligence tools.
08.04.01. AR aging report generation — Enables accounting representatives to generate their own AR aging reports with various parameters and criteria to support collection efforts.
08.04.02. Gross amount reporting — Reports open AR or gross amount of payments for a tax year by client.
08.04.03. PowerBI export support — Supports export of AR data to business intelligence tools like PowerBI for advanced analysis and visualization by accounting leadership and agents.
08.04.04. Write-off item reporting — Includes write-off items in dynamic reporting capabilities for revenue department review and management analysis.