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How Does Dunning / Collections work in Oracle NetSuite?

Written by Craig Cook | Mar 7, 2023 9:00:00 AM

Topics: NetSuite, Blog Posts

In Oracle NetSuite, Dunning/Collections is a process that helps businesses collect outstanding payments from their customers. This functionality can be beneficial for organizations of any size and industry that sell products or services on credit and have to manage overdue invoices. The Dunning/Collections process is designed to automate the collection process, reduce the risk of bad debt, and improve cash flow.

Here's how the Dunning/Collections process works in NetSuite:

Creating a Dunning Plan:
The first step is to create a dunning plan that outlines the steps that will be taken to collect outstanding payments. The dunning plan will specify the frequency and severity of collections efforts, including emails, letters, and phone calls.

Assigning Dunning Levels: In NetSuite, you can assign different dunning levels to customers based on the severity of their delinquency. Each level specifies a set of actions that will be taken to collect the outstanding balance.

Running Dunning Reports: NetSuite provides several pre-built reports to track delinquent accounts and dunning activity. These reports can help businesses stay on top of their collections efforts and identify any issues that need to be addressed.

acctoverdue1Sending Collection Notices: NetSuite can automatically send collection notices to customers when they reach a certain level of delinquency. These notices can include past due balances, late fees, and the steps that will be taken if payment is not received.

Recording Collection Activities: NetSuite allows businesses to record collection activities in the customer record. This can include notes on phone calls, emails, and other interactions with the customer.

Here are some examples of the different types of organizations that would benefit from the Dunning and Collections functionality in NetSuite, and some use cases for implementation:

  • E-commerce Businesses that sell goods or services online and offer credit terms to their customers can leverage Dunning and Collections functionality to reduce the number of overdue invoices, improve cash flow, and minimize the risk of bad debt.

  • Subscription-based Businesses offering recurring products or services can benefit from NetSuite's D&C by automating billing processes, minimizing the risk of missed payments, and reducing the time and effort required to manage collections.

  • Professional Services Firms that bill their clients on a time and materials basis achieve better tracking of billable time, automate their invoicing processes, and manage collections more efficiently.

  • Manufacturing and distribution companies that offer credit terms to their customers realize improved cash flow, reduce the risk of bad debt, and streamline collections processes.

  • Non-profit organizations that rely on donations and contributions from their supporters can benefit from Dunning and Collections functionality in NetSuite too! This functionality can help them manage their donor contributions more effectively, reduce the risk of missed payments, and minimize the need for manual outreach to their patrons.

In summary, the Dunning/Collections process in Oracle NetSuite is designed to help many types of businesses streamline their collections efforts, reduce the risk of bad debt, and improve cash flow. By automating the collections process, businesses can save time and resources while improving their collections success rate. Organizations that are using NetSuite and have a compelling reason to leverage PSA, but are not taking advantage of this module, are leaving money on the table and have increased risk exposure.

If your organization is spending time and labor to collect the monies that you are rightfully owed, it's time to look into Dunning and Collections from Oracle NetSuite. Need the right guiding hand to help you on your journey of discovery and implementation? Contact our team of financial process experts today to learn how NetSuite's D&C module can Move Your Business Forward >

Written by Craig Cook

BSP's Chief Marketing Officer Craig Cook is passionate about educating business owners about NetSuite & HubSpot, and expanding on opportunities for users. He is an expert on deploying HubSpot with SuiteCommerce, unlocking the power of an integrated solution. Craig is the host of the New York, Northern California and Southern California NetSuite User Groups.

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