In the dynamic world of business, managing finances and credit is of paramount importance. To address this critical aspect, the Odoo Community Association (OCA) has proposed an ingenious Credit Control System that simplifies the way businesses manage credit, payments, and financial risk. In this blog post, we'll delve into the key features and benefits of this proposed system, highlighting its potential to reshape credit management strategies.
On Odoo Community Edition we must review overdue invoices one by one. This might be impossible to manage with large amount of invoices. Once we work with Odoo Enterprise Edition, we can check a Follow-up report for each of our customers, but it might be hard to manage when a customer has too many invoices.
Through the credit control system proposed by the OCA, a systematic approach emerges. It necessitates the establishment of a Policy level, applicable to our company as a whole or selectively to specific clients. This policy framework allows us to devise preemptive strategies. Moreover, streamlining the process, we have the ability to create a personalized workflow that could resemble the following:
- Upon invoice overdue, initiate an email requesting payment schedule from the customer.
- After a thirty-day interval, dispatch a second reminder.
- Sixty days post-overdue, transmit a final email notifying the customer of our intention to seek legal counsel if necessary.
These predefined policies are executed automatically when the credit control process is initiated. Our role primarily revolves around ensuring the accurate execution of these protocols.
Key advantages
Enhanced Efficiency for Accounting Team: The proposed system simplifies the role of our accounting team, alleviating the need for them to formulate customer-specific strategies. Instead, they seamlessly follow the prescribed workflow.
Automated Procedures: The credit control system eliminates the dependency on manual review of all accounting aspects. It replaces this with a systematic appraisal of the system-generated proposals, allowing us to focus on validation rather than exhaustive analysis.
In summary, it presents a transformative opportunity for businesses to optimize credit management. By automating processes and providing a structured approach, this system promises increased efficiency, reduced manual intervention, and a proactive stance in managing financial dynamics.