Magazine article Business Credit

Make A/r Aging Your Credit Toolbox

Magazine article Business Credit

Make A/r Aging Your Credit Toolbox

Article excerpt

Credit managers are not unlike other tradesmen and professionals in that we use tools to help us do our work. The credit manager's tool is information. Traditionally, much of the information a credit manager had on a customer was in the form of a credit application, credit reports and correspondence, collection cards, and the Accounts Receivables Aging Report.

Armed with these three basic tools, the credit manager was prepared to work.

But now one would quickly determine that these sources of information do not hold much information. A good place to start to make improvements is the A/R Aging Report. The aging is easily accessible, provides the most current information available about your customer's account, and gives the name,address,and telephone number. But it could do so much more!

With the help of computers and a capable programming department, you could have the credit toolbox you've always dreamed of.

The following is a list of information that is now available for our credit department.

  Field          Description
 Crd Limit:   Customer's credit limit
    Status:   Negative or remarks such as "COD" or "CASH"
 Open Date:   Date account was opened
  High Bal:   Highest balance in last 12 months
  H/B Date:   Date of highest balance in last 12 months
     Terms:   Credit terms
GP Percent:   Average gross profit percentage for the last
              12 months
  Ind Code:   Customer's industry code
    Rating:   Credit rating
Pay Score1:   Pay score
 Pay Date1:   The date of the pay score
Pay Score2:   The previous pay score
 Pay Date2:   The previous pay score date
       SLS:   Salesman number
   Pay Avg:   Indicates the number of days it takes this customer
              to pay bills (monthly avg. … 
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