Key Roles & Responsibilities of

Accounts Receivable - Finance in

ERP and CRM

Prepared By:
Accounts Receivable – Finance Department
 OBJECTIVE:
 To improve and enhance level for achievement collection target
and implementing collection responsible through CRM/DAX
(ERP).

Prepared By:
Accounts Receivable – Finance Department
 OVERVIEW OF TODAY’S SESSION
 Accounts & Finance Department
 Sections of Accounts & Finance Department
 What is the difference between ERP vs CRM?
 Key benefits of CRM & ERP integration
 Key features & functionalities ERP vs CRM
 Importance of source documentation
 Customer Credit Policy
 Collection responsible activity in CRM
 Information Sources
 Communication Protocol
 Accounts receivable automatic outstanding payment follow-up emails
 SOP, Manual & Key Reports (AR).
 Question & Answer Session
 ACCOUNTS & FINANCE DEPARTMENT
 Accounts & Finance Department is responsible to
provides accounting services and manages the financial
activities of the company.

Prepared By:
Accounts Receivable – Finance Department
 SECTIONS OF ACCOUNTS & FINANCE
DEPARTMENT
 The following sections are devising to perform the entire duties
of the Accounts and Finance Department.

Accounts
Receivable

Accounts
Payable
I & II

Accounts &
Finance
Department

Cash & Bank

Management

Payroll,
Compensation
Prepared By: and Benefits
Accounts Receivable – Finance Department
 ACCOUNTS RECEIVABLE SECTION
RESPONSIBILITIES:
 Accounts Receivable is responsible for effective management,
analysis, and problem resolution of the company’s outstanding
accounts and review customer credit limit & credit rating.
 To review and process invoices/payments and reconcile
customer receivable balances.
 To review daily receipts and settlement of invoices and monitor
the follow-up protocols for timely collection to keep the
receivable outstanding at a minimum level.

Prepared By:
Accounts Receivable – Finance Department
 WHAT IS THE DIFFERENCE BETWEEN
ERP VS CRM?
BASIS FOR Enterprise Resource Planning Customer Relationship
COMPARISON (ERP) Management (CRM)

Focuses on ERP focuses on Reducing Costs, CRM is specifically designed to

Increasing Visibility, and Streamlining Increase Sales and Improve
Processes. Customer Satisfaction.

Utilized in Back-office activities Front office activities

Core Feature Improved accuracy for Financial Facilitate Consistent, High-

quality Customer Support.

Time Base Real-time Business Process Information Improve response time

within and cross Departments.

System Work Manage Invoicing and Payment while Pursue new Leads and
creating records and alerts at every step Opportunities more effectively.
in the process.
Prepared By:
Accounts Receivable – Finance Department
 KEY BENEFITS OF CRM & ERP
INTEGRATION
 A 360-degree view of your customer.
 Better access to critical information.
 One window solution.
 To improve and enhance level of collection achievement
vs target.
 Automation of tasks assigned.
 Individual users' dashboards and Reports.

Prepared By:
Accounts Receivable – Finance Department
 KEY FEATURES &
FUNCTIONALITIES ERP VS CRM
Key Features Enterprise Customer Relationship SOP Internal
& Resource Management (CRM) Affected Change Control
Functionalities Planning (ERP) TO-BE
AS-IS
Customer All customer All customer is opened in No SOP No Internal
Management account open in CRM from prospector by Affected in Change Control in
ERP until go-live CSD. AR. AR.
software of CRM. Customer Data
Synchronizing through
JOB from CRM to ERP.
Contact All customer All contact is opened in No SOP No Internal
Management contact open in CRM from prospector by Affected in Change Control in
ERP until go-live CSD. AR. AR.
software of CRM Customer Data
Synchronizing through
JOB from CRM to ERP.
Credit Control All Credit The Credit limit/Credit Customer Focus both
Management limit/Credit Rating Rating Data Credit Policy screen and data
updated in ERP Synchronizing through validate ERP v/s
by AR. JOB from ERP to CRM, CRM after the
Prepared By: JOB will do as per
Accounts Receivable – Finance Department schedule.
 KEY FEATURES & FUNCTIONALITIES ERP
VS CRM
Key Features & Enterprise Resource Customer SOP Internal
Functionalities Planning (ERP) Relationship Affected Change Control
AS-IS Management
(CRM)
TO-BE
Invoice AR create customer Invoice Data AR (Finance) Focus both screen
Management invoices (Sale/Sales Synchronizing will issue new and data validate
Return) that are based through JOB from guidelines to ERP v/s CRM after
on sales order status ERP to CRM. validate data the JOB will do as
“Delivered”. ERP v/s CRM. per schedule.

Payment All payments will record Payment Data AR (Finance) Focus both screen
Management in ERP after confirmation Synchronizing will issue new and data validate
from CBM. through JOB from guidelines to ERP v/s CRM after
All Dishonor cheque entry ERP to CRM. validate data the JOB will do as
will record in ERP by ERP v/s CRM. per schedule.
CBM/Account Dept.
Free Text Free text invoice Free text Invoice AR (Finance) Focus both screen
Invoice generates according to Data will issue new and data validate
Billing Classification in Synchronizing guidelines to ERP v/s CRM after
ERP. through JOB from validate data the JOB will do as
ERP to CRM. ERP v/s CRM. per schedule.
Prepared By:
Accounts Receivable – Finance Department
 KEY FEATURES &
FUNCTIONALITIES ERP VS CRM
Key Features & Enterprise Resource Customer SOP Internal
Functionalities Planning (ERP) Relationship Affected Change Control
AS-IS Management
(CRM)
TO-BE
Settle Invoice AR settle invoices and No record No SOP No Internal
& Payment payment in ERP. transferred from Affected in Change Control in
ERP to CRM till AR. AR.
next instruction.
WRITE-OFF AR-Finance generates Write-Off data AR (Finance) Focus both screen
Voucher in ERP against Synchronizing will issue new and data validate
write-off through JOB from guidelines to ERP v/s CRM after
ERP to CRM. validate data the JOB will do as
ERP v/s CRM. per schedule.
Customer All Customer invoice No record No SOP No Internal
Invoice dispatch records updated transferred from Affected in Change Control in
Dispatch by Dispatch/Accounts ERP to CRM till AR. AR.
Dept. next instruction.

Prepared By:
Accounts Receivable – Finance Department
 KEY FEATURES &
FUNCTIONALITIES ERP VS CRM
Key Features Enterprise Resource Customer SOP Internal
& Planning (ERP) Relationship Affected Change Control
Functionalities AS-IS Management
(CRM)
TO-BE
Collection The following are the According to SOP-00025 AR will update
Management Collection status update Collection Collection collection status
in ERP. Responsible data Management in ERP than
 Collection Status Synchronizing Team activity generates
 Reason Code through JOB from in CRM.
 Reason Comments ERP to CRM.
 Promise to Pay
 Collection Responsible
Collection All collections responsible All collections SOP-00025 AR will update
Responsible activity create in ERP responsible Collection collection status
Activity until go-live software of activity will create Management in ERP than
(Target vs CRM. in CRM. Team activity generates
Collection) in CRM.

Prepared By:
Accounts Receivable – Finance Department
 KEY FEATURES &
FUNCTIONALITIES ERP VS CRM
Key Features & Enterprise Resource Customer SOP Internal
Functionalities Planning (ERP) Relationship Affected Change Control
AS-IS Management
(CRM)
TO-BE
Customer Customer Reconciliation No record No SOP No Internal
Reconciliation status will update in transferred from Affected in Change Control in
DAX. ERP to CRM till AR. AR.
next instruction.

Activities/Case All activity/Cases create All activity/case AR (Finance) All

Management in ERP until go-live will create in CRM. will issue new activities/Cases
software of CRM. guidelines create in CRM.
regarding
Activity/Case
Management.
Complaint New Activity in CRM. All complaint No SOP Escalation &
Management activities will Affected in Resolution time
generate AR. as per Matrix
according to the issues by CSD.
Prepared By: Policy issued by
Accounts Receivable – Finance Department CSD.
 IMPORTANCE OF SOURCE
DOCUMENTATION
 The source document is a good internal control & external control and provides evidence
a transaction occurred. Providing source documents to our Data Entry Operator (DEO) or
Assistant Manager Accounts (AMA) promptly assists them in preparation invoice &
payment of customer activities and accurately analyzing our customer outstanding. 
 The following documents are important and mandatory to be produced/maintained at all
times of the Accounts Receivable Department (ARD).
 Sales Order,
 Purchase Order,
 Payment Receipt Slip,
 Delivery Challan along with customer receiving,
 Gate Pass,
 Customer’s Goods Receipt Note (GRN),
 Invoice receiving a copy with sign and stamp etc.
 Bank Instrument (Cheque) along with Specialized Deposit Slip (SDS).
Prepared By:
Accounts Receivable – Finance Department
 RECEIVING OF PAYMENT INSTRUMENT
FROM CUSTOMER
 To ensure necessary compliance and minimize the risk of loss/theft in transit, all payments
should be via banking instruments in favor of the invoicing entity instead of cash which
includes:
Method of
Description Instrument Cheque Type Required Documents
Payment

In case customer payment receives

Inter-Bank Fund Customer Own / Third Party /
Online IBF through Internet Banking from his Screenshot
Transfer Information Not Available
Owner’s / Company’s Account.

In case customer payment receives

Customer Own / Third Party /
Online ATM through ATM from his Owner’s / ATM Confirmation Receipt
Information Not Available
Company’s Account.

In case customer payment receives

Online Customer Own / Third Party / Cheque Copy along with
through Ch of Same Bank from his Cheque
Cheque Information Not Available Deposit Slip
Owner’s / Company’s cross cheque.

Online Cash In case customer payment receives Deposit Slip/ Name & CNIC
Cash None
Deposit through cash. number

Jazz Cash In case customer payment receives

Jazz Cash None Screenshot
Deposit through Jazz Cash.

Prepared By:
Accounts Receivable – Finance Department
 CUSTOMER CREDIT POLICY
 This customer credit policy intends to provide detailed guidelines for
efficiently assigning appropriate customer credit limits and collections of
Accounts Receivable in an equal manner with maximizing the company’s
business performance by maintaining a moderate level of investment in
Accounts Receivables, minimizing write-offs of receivables and maximizing
sales. This customer credit policy may be modified to suit economic
conditions, competitive situations or company strategy.

 The process involves assessing a customer's ability, willingness and financial

potential to pay under the terms of sale and the likelihood of late or defaulted
payment. The credit limit is a measure of the customer's creditworthiness and
is based on the ability to pay amounts due on time.

 All Customer Credit limit will be improved through Credit Assessment form.

Prepared By:
Accounts Receivable – Finance Department
 CREDIT RATING PROCEDURE
 The credit rating procedure contains four (4) criteria, each criteria having a
maximum of 10 scores, as per each customer performance score will be
awarded to them from 1 to 10 according to an established slab.

 In additional criteria also included having negative scores. It also grants

according to customer behavior/ of Customer Dishonor Cheque.

 After all, obtained scores will be aggregated and classified each customer
rating as per the established matrix.
Credit Rating Matrix with Aggregated Scores
Risk
Rating Ranking Aggregated Scores
Classification
Excellent Low Risk A+ 33 to 40
Very Good Medium Risk A 25 to 32
Good Medium Risk B+ 18 to 24
Fair Medium Risk B 11 to 17
Poor High Risk C 01 to 10
Very Poor High Risk D 0 & Less than 0
Default A/C Total Risk E Business Closed
Prepared By: Legal Action Total Risk F Payment Hold from Customer
Accounts Receivable – Finance Department
 CREDIT RATING PROCEDURE
Each Customer Sales / Total Sales Each Customer Payment / Total
Sales (%) Score Payment
Below 0.01 0 Payment (%) Score
0.01 to 0.01 1 Above 2.00 10
0.02 to 0.04 2 1.00 to 1.99 9
0.05 to 0.09 3 0.50 to 0.99 8
0.10 to 0.19 4 0.40 to 0.49 7
0.20 to 0.29 5 0.30 to 0.39 6
0.30 to 0.39 6 0.20 to 0.29 5 Total Scoring
0.10 to 0.19 4 (Dishonor Cheque)
0.40 to 0.49 7
0.05 to 0.09 3
0.50 to 0.99 8
0.02 to 0.04 2
1.00 to 1.99 9
0.01 1
Above 2.00 10 In a 1st 2nd 3rd
Below 0.01 0
Month Time Time Time
Payment During a Period/ Total Due Balance/Total Balance (E)
Receivable after Adjustments Balance (%) Score
Recovery (%) Score Below 09 10 From
100 10 10 to 19 9 Credit to
90 to 99 9 20 to 29 8 Score -2 -5 Advance
80 to 89 8 30 to 39 7
70 to 79 7 40 to 49 6
60 to 69 6 50 to 59 5
50 to 59 5
60 to 69 4
40 to 49 4
70 to 79 3
30 to 39 3
80 to 89 2
20 to 29 2
90 to 99 1
10 to 19 1
100 0
Prepared By:Below 09 0
Accounts Receivable – Finance Department
 GRACE DAYS & TOTAL COLLECTION
TARGET
 Level-1: Account Representative/Recovery Officer/Regional Unit Head
(RUH) will ensure that payment must be collected from customer within a
terms of payments.
 Level-2: If payment could not receive from customer within term of
payment, then Branch Manager (BM) shall engage customers for payment
recovery according to nature of the case, and shall undertake the efforts to
ensure payment must be collected as per following grace days (Collection
Target):

Grace Days Total Collection Target

Terms of Payment
(After Due Date) (In Days)
Below 07 Days - -
07 Days 8 15
15 Days 10 25
30 Days 15 45
Prepared By: 45 Days 15 60
Accounts Receivable – Finance Department
 WHAT IS DIFFERENCE BETWEEN
COLLECTION & RECOVERY
 COLLECTION:
 We can collect payment from customer accordingly Term of
Payment.
 RECOVERY:
 While recovery is the act or process of regaining or
repossession of something lost.
 We can recovery payment against hold payment from
customer or Dispute payment since not receive more than one
year.

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Accounts Receivable – Finance Department
 WHAT IS THE DIFFERENCE BETWEEN COLLECTION
RESPONSIBLE & COLLECTION AGENT

 COLLECTION RESPONSIBLE:
 Collection Responsible to take
follow-up of payment from our
valued customers unless
payment is received.
 COLLECTION AGENT:
 Collection agents are responsible
to collect payments from our
valued customers.

Prepared By:
Accounts Receivable – Finance Department
 WEEKLY MEETING OF REGIONAL UNIT HEAD
V/S DISTRIBUTION CENTRE FOR
COLLECTION PROGRESS
• MEETING SCHEDULE WITH Branch
Manager
REGIONAL UNIT HEAD (RUH)
 1st Week & 3rd Week
 FTD,PHD-A & B. Collection
ABM/AMA
Responsible
 2nd Week & 4th Week
 AHD & HHD.

Regional Unit Accounts

Head (RUH) Representative
Prepared By:
Accounts Receivable – Finance Department
 TASK ASSIGNED TO COLLECTION
RESPONSIBLE & PAYMENT FOLLOW-UP

ESCALATE
MEETING
ESCALATE TO
MEETING MANAGEMENT
ARRANGED
TOCOLLECTION
MANAGEMENT
ARRANGED RESPONSIBLE
TASK ALLOCATE
ESCALATE
TASKESCALATE
ALLOCATE
ESCALATE TO
TO
TO
TO BUH/ARD-KHO
COLLECTION
BUH/ARD-KHO RESPONSIBLE
PAYMENT
PAYMENTESCALATE TO
FOLLOW-UP RUH/BM/ABM
FROM
TO RUH/BM/ABM
FOLLOW-UP
COLLECTION MODULE /AMA
FROM CUSTOMER
/AMA&
CUSTOMER
(DAX/CRM)& PROGRESS 
PROGRESS 
COLLECTION MODULE (DAX/CRM)

Prepared By:
Accounts Receivable – Finance Department
 CUSTOMER RELATIONSHIP
MANAGEMENT (CRM)

Prepared By:
Accounts Receivable – Finance Department
 COLLECTION RESPONSIBLE ACTIVITY
IN CRM
The following are the information
available in CRM at the time activity
create of Collection Responsible.
1) Employee Code
2) Customer Account,
3) Customer Name,
4) Deal for Branch,
5) City
6) Customer Group,
7) Last Invoice Date & Amount,
8) Last Payment Date & Amount,
9) Mandatory Credit Limit,
10) Total Credit Limit,
11) Remaining Credit Limit,
12) Current Due,
13) Past Due,
14) Future Due,
15) Balance.
Prepared By:
Accounts Receivable – Finance Department
 COLLECTION RESPONSIBLE
ACTIVITY IN CRM

Prepared By:
Accounts Receivable – Finance Department
 INFORMATION SOURCES
 The following are the External & Internal information are available all Accounts & Finance
Department (Distribution Centre) and update in CRM/AX-Dynamic.
 External (Customer Representative – POC) :
 Customer Owner Name,
 Customer Accounts Representative,
 Customer Procurement Manager,
 Customer Email Address,
 Mobile Number/WhatsApp Number.
 Internal (Collection Responsible) :
 Employees Code & Name,
 Designation,
 Division,
 Region,
 Email Address,
 Rocket ID/Team/Extension Number,
 Mobile Number/Telephone Number.
Prepared By:
Accounts Receivable – Finance Department
 COMMUNICATION PROTOCOL
 All Customers are assigned to the nearest divided as per “Deal for Branch” (i.e.,
Distribution Centre wise) to ensure customer services therefore for any customer
related query must be communicated/contacted at relevant Distribution Centre as per
established “Deal for Branch” protocol.
 All email will be sent to ARD group email address as mentioned according to related
customers deal for branch (Distribution Centre).
 To enhance communication level and timely issue resolution purpose “Standard Subject of
Email” has devised for each type of matter accordingly of SOP-00032 Standardize
Subject of Email.
 Email must be configured on your devices; Smartphones, Tablets, Own PC/Laptop.
 Rocket Chat should be created for communication.
 All meeting will be conduct through Zoom, Rocket & Team.
 Follow up with customers via email, telephonic, WhatsApp, and/or SMS.

Prepared By:
Accounts Receivable – Finance Department
 ACCOUNTS RECEIVABLE AUTOMATIC
OUTSTANDING PAYMENT FOLLOW-UP EMAILS
 We run automatic email of Accounts ARD REPORTS SCHEDULES
Receivable outstanding payment Cash on Delivery (COD) Daily

follow-up email such as Order made

against accordingly schedules. Post Dated Cheque (PDC) Daily

 By adopting email procedure on daily

Current Due (CD) Daily
basis every stakeholder remains
updated which payments have
Promise to Pay (PTP) Before one day according to
become due & for which payments Promise to Pay
customer follow-up is required.
 Standard email subjects & format Future Due (FD) On Every Friday
(Next Seven Days)
have been assigned to easily
identify/search and function
accordingly (list of subjects handed Total Outstanding (TO) On Every Saturday

over in printed form).

Prepared By:
Accounts Receivable – Finance Department
 POWER BI AR-MANAGEMENT
DASHBOARD
 Branch Manager/ABM/AMA uses “Power BI AR-
Management Dashboard” based on a deal for the
branch.
 The following dashboard will be available in CRM to
focus 360-degree view customer wise.
 Calendar Wise (Jan to Dec),
 Financial Wise (Jul to Jun),
 A/R last 12 months,
 Key Area/Primary Focus:
 Revenue,
 Payment,
 Balance,
 Due & Not Yet Due,
 Recovery %
 COD, PDC & Highest Top 10 Customer of Due
Balance.

Prepared By:
Accounts Receivable – Finance Department
 STANDARD PROTOCOLS
 SOP-00004 Cash Collection Management.
 SOP-00009 Invoicing At Distribution Centers.
 SOP-00012 Customer Instrumental Documentation and Validation Process.
 SOP-00015 Payment Follow-Up from Customers.
 SOP-00016 Handling Of Dishonored Customer Payment Instruments.
 SOP-00023 Process Of Online Payment Confirmation.
 SOP-00028 Filling Of Payments Receipt Slip.
 SOP-00025 Collection Management Team.

Prepared By:
Accounts Receivable – Finance Department
 ARD MANUALS
A manual provides instructions or guidelines on how to perform an
activity according to stablished standard.
• 01-Manual-How To Create Free Text Invoice-ARD-00001-1
• 02-Manual-How to create Payment Journal against Cash And Online-ard-00002-1
• 03-Manual-How to create Payment Journal of Postdated Cheque (PDC)-ARD-00003-1
• 04-Manual-How To Create Sales Order Invoice-ARD-00004-1
• 05-Manual-How to update Customer Cheque Detail in Customer Profile-ARD-00005-1
• 06-Manual-How to Settle Invoice & Payment & Reverse Close Transaction-ARD-00006-1
• 07-Manual-How to report generate of Detail Due Day list-ARD-00007-1
• 08-Manual-How to view Customer Balance with Division-ARD-00008-1
• 09-Manual-How to view Customer Payment Average Days-ARD-00009-1
• 10-Manual-How to Use Collection Module-ARD-00010-1
• CRM manual will be shared as soon as possible.

Prepared By:
Accounts Receivable – Finance Department
 ACCOUNTS RECEIVABLE KEY AREAS IN DAX
 REPORTS:
 Cross Company Detail Due Day List,
 Aging Report (NEW),
 Internal Statement of Accounts V-3,
 Customer Balance List,
 Sales Report Invoice Wise,
 Cross Company Customer Transaction,
 Customer Dishonored Cheque.
 COLLECTIONS MODULE:
 Collection Activities,
 Collection Cases,
 Collection Responsible.

Prepared By:
Accounts Receivable – Finance Department
Prepared By:
Accounts Receivable – Finance Department
Prepared By:
For Comments & Feedback, write us
Accounts Receivable – Finance Department on: khiard@ghazibrothers.com.pk