Improve your cash flow with Microsoft Dynamics NAV Reminders
With today’s downturn in the economy, corporate controllers and CFOs are focused on cash flow management to enable their companies to survive the uncertainty of market conditions. Cash flow is defined as the difference between cash coming into the business and cash leaving the business within a specific time period. Cash that flows into a business does not always correspond to the same rate of cash going out of the company. When a cash shortfall occurs, companies may need to borrow funds to pay their bills, or delay needed expenditures that may improve their business.
Every company experiences customers who do not pay on-time. To improve cash flow, Microsoft Dynamics NAV (Navision) offers users the ability to setup Reminders (some may call them dunning notices or statements) for customers who have overdue invoices. A Reminder system prompts customers to pay overdue amounts and informs them of possible interest charges. If customers refuse to pay overdue invoices after they received reminders, a finance charge memo can be issued for the interest charges. And of course we all know that customers respond to reminders and happily pay finance charges but that’s for another blog post
Implementation of Microsoft Dynamics NAV Reminders
The first step in issuing Reminders is to setup Reminder Terms:
For each Reminder Term, Reminder levels can be setup to define when Reminders can be created, and the charges and texts that should be included.
The Reminder Terms are then attached to the appropriate customers that will be sent reminders. The Create Reminders function under periodic activities is then triggered to create the suggested reminders, and then after user review, the reminders are issued and sent to the customers who have overdue invoices. Customers are then notified that monies are due, and prompt payment necessary. Using Reminders will shorten collection periods for overdue invoices, and improve cash flow. With improved cash flow, borrowing costs are reduced and inventory levels can be increased, making for a healthier and more profitable company.