Efficiently Managing Accounts Receivables
REVIEW ACCOUNTS RECEIVABLE PROCESSES FOR WARRANTY AND
CUSTOMER, INCLUDING VARIOUS FLAGS AND SETTING TO HELP MANAGE
YOUR RECEIVABLES
Effectively Managing Accounts Receivables
John Hynes– Support Manager
◦ 9 Years at Quorum
◦ Been at Quorum for 9 years started in Accounting Support, moved to Team Lead, then Supervisor
◦ Highlights
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Accounting Diploma and Business Admin Diploma, BBA in progress
Well versed in Excel and Flex Reports and also built latest DOC Report as well as other reports used by dealers
Help to manage our eQUIP and uTRAIN programs, heavily involved with performance initiatives within Quorum.
Worked to create KIA DFS and assisted on other DFS templates
Manage deployment of new flex reports
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Course Objectives
• Reduce time spent on processing AR
• Learn to reduce overdue amounts to increase cash flow
• Establish control over who is assigned credit and create a password for
overrides
• Review Auto Warranty process vs. Manual warranty process
• Understanding the control table flags for Accounts Receivable
• Importance of Investigating warranty rejections for prompt payment
• Reviewing the reports that are key for managing receivables
• Showing how to setup Emailing AR Statements
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Course Takeaways
• Checklist of all AR control table flags
• Communicator setup so you can email statements
• Review Payment types for proper flagging
• Interest - Are you using it? Should you use it?
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Accounts Receivable Cycle
• What is the Accounts Receivable Cycle?
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Customer Receivables
• Do some customers really think this way?
• How can we reduce overdue receivables?
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Emailing AR statements
1. Email Statements
◦ Do you have Communicator? If you email statements, customers get them within minutes.
But you need to confirm their email addresses.
◦ Deliver the statement quicker - get payment quicker!
◦ Setup is easy. Support can help.
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Faster Payments
2. Set-up EFT or additional payment options
◦ Use PayPal to help get payments faster.
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Regular Review
3. Review reports regularly
• Subledger Aging Report
◦ Used to track aging of Receivables and Payables
◦ Run weekly
• Are there other reports available?
◦ Key Current Subledger Accounts Flex Reports
◦ Subledger Aging Quidget
• What else can you do?
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Credit Policies
4. Credit Policies
◦ Do you review your customers before granting credit?
◦ Control table flags and Control Tables related to Accounts Receivable in both accounting and
associates
◦ What statement format do you use - Balance forward or Open Item?
◦ Limit the amount of incorrect charging of accounts using password and policy on who gets
credit
◦ Maintain Collection Record
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Effectively Managing Accounts Receivables
• Associate Data- Main
window and Customer
profile
◦ Credit button
◦ AR Balance
◦ Customer Summary
• Customer profile
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Allow Credit
Credit Limit
Apply Interest
Statement terms
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Warranty - Auto vs. Manual
• Warranty Receivables
◦ Automated Warranty reconciliations vs. manual
• Automated Warranty Reconciliations
◦ Time savings
◦ Other benefits to automation, easily find claims that are rejected as they will be in the
exceptions list
◦ How to automatically write-off small balances
• Setup involves two control table flags to
set, and a table to populate
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Auto Warranty Reconciliation
• Automated Warranty Reconciliation
◦ Automated Warranty flags any exceptions if
it cannot find the claim or WO, This is in the
notes of the recon
◦ Can easily see an automated Warranty recon
◦ Taxes and PDI and Write off created
automatically… a significant time saver
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Auto warranty
• Automated Warranty
◦ Manual or Automated, review rejected claims ensure they are followed up on
◦ If not followed-up on and corrected, you may lose the claim
◦ Using automated recon frees up time to investigate rejections, exceptions and other issues to
keep receivables current.
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What is the goal?
• Warranty Receivables
◦ How old should warranty receivables be?
◦ Over 30 days should be 10% or less as there is a
time frame on claims
◦ If goes beyond 30 days the claim is unlikely to be
paid. If rejections are not followed up on quickly,
write-off could be high.
◦ So whether using automated process or manual it
is crucial to correct rejections.
◦ It is also critical to identify process problems
where claims continue to be rejected
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Wrap-Up
• Receivables are sometimes necessary from a customer standpoint, but are
part of the day-to-day for warranty. We have only scratched the surface…
there are many more types of receivables
• Insurance, Factory, contracts each have a big impact on cash flow.
The more
money tied up reduces cash and takes time for someone to investigate and
resolve and get payment.
• We are designing a training plan to go over all aspects of receivables and all
types and help develop processes to assist your dealership.
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Wrap-Up
• Review if you have communicator - if not sign up to send your customers
statements via email. Cost is low!
• Review if PayPal is worth your investment to allow customers to pay
electronically
• We will provide a checklist to review your control tables and ensure all is setup
to standard
• For further help and to ask about the on site training for receivables contact
Service delivery at 1 888 267 6180 ext. 515
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Questions?
18/09/2015
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