"This function is vital as it has a direct effect on one of the components of the cash generation or maintenance. From the analysis of customer credit risk to sales collection, interaction with other departments within the organization is extremely important".
Observations usually made:
> Lack of control on the accounts receivable opening and on the determination of the authorized level of credit.
> No credit insurance.
> Lack of control of the credit insurance contract terms where credit insurance claims happen too late ...
> Invoices are not checked and sent to customers (exhaustively) in a timely manner.
> No regular monitoring of accounts receivable clearance and DSO figures.
> No coordination, effective synergy with other departments (Customer service, Sales, After sales service ...).