Invoices dispute management
|Managing customer disputes is a key step in the selling process of a business. Indeed, disputes are the consequences of all the existing issues in company's internal processes. They come from:
|They represent therefore many opportunities to improve the organization and quality processes.
Disputes are mainly sources of delay in payment as invoices affected by litigation are not paid by dissatisfied customers. As a reminder, a invoice must be to be recoverable:
In addition, litigation adversely affect customer satisfaction, especially if they are not resolved quickly.
Disputes are therefore a source of pain for businesses (cash flow pressures due to delays induced payment, increase in working capital, loss of credibility and loss of time spent resolving the dispute ... etc..) But may be the point of start to identify internal problems and improve the products and services sold.
Disputes and Credit ManagementThe identification and treatment of disputes are closely related to management of customer receivables and debt collection. The problem they generate must be integrated into the collection process, whose objective is to obtain payment of bills on their due date.
Thus, the first collection action is done before the due date of the invoice in order to ensure that there is no dispute preventing the payment of the invoice.
If there is dispute, this preventive recovery allows to detect it as soon as possible and to resolve it as quickly as possible in order to get paid the bill. This helps to speed up the collection process and the payment may be done on the due date despite the dispute, which has been resolved in the meantime.
Dispute management processA process of disputes management must be established in the company to determine the roles and responsibilities of each department involved and ensure proper consideration of the dispute by the organization.
Nothing is worse than leaving aside disputes or treat them "when we have time." Studies have shown the impact of litigation on customer satisfaction:
Key factors of success are:
Dispute typesThere are different types of disputes for which treatment may be different because of their nature.
For example, a dispute related to a billing error (bad wording, error on the price ... etc..) can be solved by the sales administration when a technical dispute will be considered by the sales manager or the technician.
It is therefore necessary to categorize disputes to improve their treatment. For example:
For each type of dispute, a maximum period for a resolution can be set. For example, a price dispute, simple to control and treat must be resolved within eight days when a quality issue may be more complicated to resolve and take more time.
Collect disputed invoicesThe process of debt collection is stopped during the treatment period of the dispute. It will resume when the dispute is resolved with a new due date equal to the date of resolution of the dispute.
The first action is a collection action level 1 with the aim of obtaining a promise to pay immediately.
Late payment penalties and disputesIt is common sense to assert that late payment penalties do not apply to payment delays due a dispute proved. However, they are applied when the dispute is not real and / or resolved as the invoice reverting certain, valuable and due.
Next: Collection prior due date
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