AutoCount- Advance Credit Control

Introduction to AutoCount Advance Credit Control

Effective credit management is crucial for the financial health and stability of any business. It ensures that your company maintains a healthy cash flow by managing receivables efficiently and reducing the risk of bad debts. The AutoCount Advance Credit Control module empowers businesses to seamlessly implement and enforce robust credit policies.

In this comprehensive guide, we will delve into the features, benefits, and best practices of using AutoCount Advance Credit Control. Additionally, we will explore the AutoCount Remote Credit Control Module, which provides supervisors and managers with the flexibility to approve documents from their own workstations, ensuring smoother operational workflows. We will also cover how to manage access rights for credit control approvals, a critical aspect of maintaining security and proper authorization. Whether you’re a small business owner or a finance manager, understanding how to utilize these tools effectively can significantly enhance your credit management strategies.

What is AutoCount Advance Credit Control?

AutoCount Advance Credit Control is a specialized module within the AutoCount software suite that empowers businesses to manage their credit policies more effectively. This module enables you to set and enforce credit limits, manage overdue accounts, and control the issuance of critical transaction documents like invoices and delivery orders based on pre-defined credit terms. By automating these processes, businesses can minimize the risk of overextending credit and maintain a stronger financial position.

Importance of Credit Control in Business

• Prevents Excessive Credit</h3 >

  A structured credit control system ensures businesses do not extend excessive credit to customers, reducing financial risk.

• Reduces Payment Delays</h3 >

  By setting clear credit terms, businesses can minimize delayed payments, improving cash flow.

• Mitigates Default Risk</h3 >

  Effective credit control lowers the chances of customer defaults, protecting the business from financial loss.

• Maintains Healthy Cash Flow</h3 >

  Ensuring timely payments helps maintain steady cash flow, preventing liquidity issues.

• Enforces Credit Policies</h3 >

  Systems like AutoCount Advance Credit Control help businesses enhance financial stability by ensuring they give credit only to customers who meet strict criteria.

Step-by-Step Guide to Configuring Credit Limits

Setting Up AutoCount Credit Limits

Configuring credit limits in AutoCount Advance Credit Control is straightforward and essential for maintaining financial discipline. Here’s how you can set it up:

1. Access the Debtor or Creditor Record:

• Navigate to the “Debtor” or “Creditor” maintenance section within AutoCount.
• Select the specific debtor or creditor account you wish to modify or review

2. Open the Account for Editing:

• Click on the “Edit” option to open the debtor or creditor account details.

3. Locate the Credit Control Button:

• In the “Edit Debtor Account” window, locate the “Credit Control…” button at the bottom right corner of the screen.

4. Click the Credit Control Button:

• Clicking this button will open the credit control settings, where you can configure various options related to credit limits, overdue terms, and control policies.

5. Enter Credit Limit Information:

• Input the desired credit limit for each debtor or creditor.
• Choose whether the credit limit should apply to all documents or specific ones like invoices or sales orders.

6. Save Settings:

• Finalize the configuration by saving your settings.

Overview of Credit Control Policies

AutoCount Advance Credit Control offers several key policies that allow businesses to manage credit effectively. These policies enforce credit limits and ensure businesses conduct transactions within safe and acceptable boundaries. The main credit control policies include:

All Disabled

This option disables all credit control measures. When selected, transactions can proceed without any checks on credit limits or overdue balances. Businesses typically use this setting when they do not require credit control for certain transactions or customers.

Controlled by Credit Term

This policy enforces the credit terms set for each debtor. If a debtor exceeds their credit limit or overdue limit, the system will either block the transaction or require authorization, such as a password, before the transaction can proceed. This setting ensures that all credit transactions align with the agreed credit terms.

Suspend

Selecting this option halts the issuance of new transaction documents (e.g., invoices, delivery orders) for any debtor who exceeds their credit or overdue limit. Further transactions are blocked until the debtor reduces their outstanding amounts to acceptable levels, providing strict control to mitigate additional credit exposure.

Understanding the Difference Between Credit Limit and Credit Term’s Overdue Limit

It’s crucial to differentiate between the Credit Limit and the Credit Term’s Overdue Limit within the AutoCount Advance Credit Control system:

Credit Limit

This is the maximum amount of credit that a debtor is allowed to owe at any given time. It controls the total credit exposure to a debtor. If this limit is exceeded, the system can block further transactions, require special approval, or suspend the debtor until the balance is reduced.

For example, if the credit limit is set to MYR 30,000, the debtor cannot initiate new transactions that would increase their outstanding balance beyond this amount without triggering a credit control action.

Credit Term’s Overdue Limit

This represents the maximum amount of overdue invoices a debtor can accumulate before corrective action is triggered. It focuses on managing the risks associated with overdue payments, ensuring debts are addressed promptly to prevent excessive delinquency.

For example, if the overdue limit is set to MYR 5,000 and a debtor has unpaid invoices exceeding this amount past their due dates, the system can block further transactions or initiate other predefined actions.

Both limits are crucial for maintaining a balance between encouraging sales and managing credit risk effectively. While the credit limit controls the overall exposure, the overdue limit specifically manages the risk of late payments.

Customizing Credit Limits

Setting specific credit limits for each debtor or creditor is a fundamental aspect of managing credit risk effectively. AutoCount allows users to define these limits based on various factors, including the debtor’s payment history, financial stability, and business relationship. Custom credit limits ensure that your company only extends credit within safe boundaries.

How to Adjust Credit Limits?

Users can periodically review and adjust credit limits to reflect changes in the debtor’s financial status or payment behavior. This dynamic approach to credit management helps maintain control over credit exposure and adapts to the evolving financial realities of your customers.

Applying Different Controls to Different Documents

Configuring Credit Control for Quotations, Sales Orders, and Invoices

AutoCount’s flexibility allows users to apply different credit control settings to various documents:

• 
  

  Quotations</h3 >

  You might set a higher tolerance for credit limits since they do not directly impact cash flow.

• 
  

  Sales Orders</h3 >

  Stricter controls may be applied in this case, as these transactions are closer to being converted into receivables.

• 
  

  Invoices</h3 >

  The strictest controls are often applied to invoices to ensure that payment terms are enforced.

Practical Scenarios for Document-Specific Controls

Different scenarios might require different credit controls. For example, a new customer might have stricter controls on sales orders and invoices, while a long-standing, reliable customer might have more lenient settings.

Applying Credit Limits Across Multiple Debtors or Creditors

For businesses dealing with numerous debtors or creditors, AutoCount allows bulk setting of credit limits. This can be efficiently done using the “Find Debtor” or “Creditor Maintenance” features, where users can apply the same credit control settings to multiple accounts simultaneously.

Sales Credit Control Calculations

Excluding Outstanding Sales Orders from Credit Calculations. Go to Tools => Options => Invoicing => Customize Invoicing 2

One of the advanced features of AutoCount Advance Credit Control is the ability to exclude outstanding sales orders from the credit control calculation. This feature is particularly useful for businesses that want to focus on receivables that are actually overdue rather than those that are still in the sales process.

Customizing Sales Credit Control Calculations

Customization is key to effective credit control. AutoCount allows users to tailor the credit control calculations by including or excluding various elements such as outstanding delivery orders or post-dated cheques. This flexibility ensures that businesses can align the credit control process with their specific operational needs.

Impact of Including/Excluding Outstanding DO and Post-Dated Cheques

Including or excluding outstanding delivery orders (DO) and post-dated cheques in the credit control calculation can significantly impact the perceived credit exposure. By excluding these items, businesses can prevent their credit control limits from being artificially inflated, leading to more accurate credit risk assessments.

Handling Violations in Credit Terms

What Happens When Credit Terms Are Exceeded?

When a debtor exceeds their credit terms, AutoCount can automatically block further transactions, suspend the debtor’s account, or require a password for any transaction to proceed. These measures prevent further exposure to credit risk.

How to Use Password Protection for Violations?

Password protection is a crucial feature that ensures only authorized personnel can override credit controls. When a debtor exceeds their credit terms, the system can be configured to prompt for a password, ensuring that only approved individuals can authorize further transactions.

Suspension of Transactions: When and Why?

Suspension is a severe measure used when a debtor repeatedly violates credit terms. By suspending transactions, businesses can stop further credit exposure and focus on recovering outstanding debts.

Setting Up Credit Control for Multiple Debtors or Creditors Simultaneously

Access Rights for Approval Users on Credit Control

Proper management of access rights is essential for maintaining security and ensuring that only authorized personnel can approve transactions that exceed credit limits or overdue terms. AutoCount allows you to set these access rights easily. To manage access rights for users who can approve credit limit overrides or overdue limit transactions:

• Navigate to Access Rights Maintenance</h3 >

  – Go to General Maintenance > Access Rights Maintenance.

• Search for Credit Control Permissions</h3 >

  – In the Access Rights Maintenance window, use the search bar to find permissions related to “credit limit” or “credit control”.

• Select and Apply Access Rights</h3 >

  – You will see options like “Can Approve Sales Document Credit Limit Control” and “Can Approve Purchase Document Credit Limit Control”. These options should be assigned to the appropriate user groups, such as “Admins” or “Finance Managers”, ensuring that only those with the necessary authority can approve transactions that exceed the set limits.

• Save and Apply</h3 >

  – After selecting the relevant permissions, click “Apply” to save the changes. This ensures that the specified users have the necessary rights to approve credit-related transactions securely.

Integrating AutoCount Credit Control with Your Business Workflow

Aligning Credit Control with Your Accounting and Financial Systems

To maximize the benefits of AutoCount Advance Credit Control, it should be seamlessly integrated with your existing accounting and financial systems. This alignment ensures that credit control policies are consistently applied and that financial data is accurately reflected across all platforms.

Automating Credit Control Processes

Automation is a key benefit of using AutoCount. By automating credit control processes, businesses can reduce manual errors, save time, and ensure that credit policies are enforced consistently.

AutoCount Remote Credit Control Module

One of the most significant advancements in the AutoCount ecosystem is the AutoCount Remote Credit Control Module. This module allows supervisors or managers to approve documents remotely from their own PCs, eliminating the need to access the staff’s workstation directly. This added flexibility ensures that credit approvals are handled efficiently without disrupting the workflow.

Remote Approval

Managers can review and approve transactions that exceed credit limits or overdue terms from anywhere within the network, ensuring that operations are not delayed by physical constraints.

Enhanced Security

The remote module also enhances security by ensuring that only authorized personnel can approve or override credit limits, reducing the risk of unauthorized access.

If you’re interested in learning more about the benefits of the AutoCount Remote Credit Control Module for your business, please visit AutoCount Remote Credit Control Module.

Future Trends in Credit Control Software

As businesses continue to evolve, so too will credit control software. Future developments are likely to include more advanced analytics, AI-driven credit assessments, and even greater integration with broader financial management systems.

Streamline Your Accounting Process

Find the Perfect Plan to Optimize Your Business Finances

Discover Plans

Conclusion

The AutoCount Advance Credit Control module is an indispensable tool for any business looking to manage its credit effectively. By setting up robust credit controls, businesses can safeguard their cash flow, minimize bad debts, and maintain strong financial health. Implementing the strategies and best practices discussed in this guide will help you get the most out of AutoCount Advance Credit Control, ensuring your business thrives in a competitive market.

FAQs

Can I Exclude Outstanding Sales Orders from Credit Control Calculations?

Yes, AutoCount allows you to exclude outstanding sales orders from the credit control calculation. You can find this option under the sales credit control settings, where it can be customized to suit your business needs.

How Do I Set Credit Control for Multiple Debtors?

To set credit control for multiple debtors, use the “Find Debtor” feature in the Debtor Maintenance section. You can select multiple debtors and apply the same credit control settings to all selected accounts.

What Happens When a Debtor Exceeds Their Credit Limit?

When a debtor exceeds their credit limit, the system can block further transactions, require a password for authorization, or suspend the debtor’s account, depending on the settings you have configured.

How Can I Suspend Transactions for a Specific Debtor?

By setting the credit control policy to ‘Suspend’ when a debtor exceeds their credit limit or term, transactions for that debtor can be halted. This prevents the processing of any further transactions until the issue is resolved.

How Do I Customize Alerts and Notifications for Overdue Limits?

You can customize alerts and notifications within the overdue limit settings. You can set the system to notify you when a debtor’s overdue amount approaches or exceeds the limit, allowing you to take timely action.

Can I Apply Different Credit Controls to Different Documents?

Yes, AutoCount allows you to apply different credit control settings to various documents such as quotations, sales orders, and invoices. This enables a more tailored approach to credit management.