June 12th, 2007	i-Tr@der MODULE FACT SHEET	MOD00012b
Document Library	Sales Debt Collection (iSop)

Introduction

The i-Tr@der Business Platform was designed from the start to be a single joined up comprehensive business system that would enable small to medium sized businesses to run their entire business with just a web browser.

iSop - Sales Debt Collection. There is a saying "a sale is not a sale until the money is collected". How very true is this statement! It is simple to create invoices, it is less easy to ensure they are paid in a timely manner. But it is the collection of the money which is paramount, because cash flow is king and without it businesses cannot operate. iSop uses the unique i-Tr@der method of sending documents on which to build the debt collection process which has some significant benefits :-

• Creating a structure to collecting debts that can be communicated to customers and more importantly adhered to, systematically and efficiently
• Reduce debtor days increasing the cash flow available to the business & reducing the chances of bad debt
• Encrypted link to ensure that Customers see only the Documents issued to them
• Documents produced in a consistent house style, professional and clear
• Acknowledgements automatically received when the Customer Views the Documents
• Savings in Time, Postage, Envelopes, Paper and printing Ink.
• Quick and simple to do

Because the  i-Tr@der Business Platform is Internet based, the debt collection process can be easily outsourced to bookkeepers or specialist external organisations to undertake remotely. All the information collected regarding payments can be recorded into the system to provide visibility of the debt collection status. 

below an Aged Debtors report, links provide the outstanding invoices relating to those periods - Figure 012.12

Feature Highlights

Some of the key features of the iSop - Debt Collection are shown in the table below :-

FEATURES	FEATURES
Simple to use, designed in the same style as all other modules	Electronic Sending of Dunning Letters with monitoring of viewing status
See who is close to their Credit Limit	Late Payments Calculations
Aged debtors Summary. Provides all the information to be able to chase debts, Accounts Balances, Aged Debt, Invoices in the debt, Full Account history including payment allocations.	Production of Late Payments Invoices and supporting documentation
Simple Statement Production, Electronic sending of Invoices, automatic Acknowledgements when Statements read	Special Debt Collection Notes to identify and report on those accounts where special attention is required to collect remittances
Statements have links to all Invoices and Credits listed and provide interactive buttons to view the complete account history and advise of payment intentions	Internet based system provides a simple means to outsource the Debt Collection function and reduce outstanding debts
4 Stage Dunning letter (dunning letters range from a reminder the account is overdue, through to passing the account to a Solictor for collection)

below an example of Special Debt Note for those accounts that require special monitoring  - Figure 012.13

Integration with other modules

iSop - Debt Collection is part of the iSop - Sales Ledger system. All documents produced by the Debt collection process are stored via the VFS (Virtual File System) System area.

Below are some other screen shots from the i-Sop - Debt Collection module :-

The first step in better Debt Collection the humble Statement

Too often Small Businesses are so busy that the important process of sending statements is only managed when it is too late and the problems of cash flow have become critical. i-Tr@der helps companies to raise Invoices and Credits as soon as they happen which means Account information is up to date and Statements can be sent at any time. Alternatively statements can be routinely sent at the end of the month with a few mouse clicks. The Statements are sent electronically using the same encrypted i-Tr@der technology as Invoices and so feedback on document viewing is automatically fed back to the person who sent the statements out.

below an example of an i-Tr@der electronic statement - Figure 012.14

Setting up a process for managing debt collection

Half the battle of reducing late payments is to adopt a standard process for debt collection. Companies will pay those businesses who keep the pressure on and press for payment. If this process can be automated and implemented with a bit of planning at the start but with minimum effort then the possible returns far outway the effot to operate the system.

Dunning letters are reminder letters increasing in severity the longer the debt remains unpaid, below an example of editing one of the Dunning letters. All Dunning letters are customisable to meet the needs of different businesses.

below, setting up a Dunning Letter (letters sent out at set overdue milestones, increasing in severity)  - Figure 012.15

Dunning letters, low cost, effective and easy to operate

To implement Dunning letters successfully requires a little upfront planning. The planning requires defining properly the trading terms with Customers and then after how many days following the due date the four Dunning letters will be invoked. Letters might go out as follows: Letter 1 (5 days after Due date), Letter 2 (a Further 7 days), Letter 3 (a further 7 days), Letter 4 (a further 7 days). Once defined Customers enter the process and then move through it automatically. Customers can be excluded from this process if required.

Rules can be defined that prevent Customers from being able to receive more deliveries when a certain stage in the debt collection process is reached.

below an example of a level 3 Dunning letter, the next step would be a letter of intent to refer to a solicitor  - Figure 012.16