Debt Management

Debt Management
Course Manual
Finance Training
Contents
1. Introduction to Debt Management................................................................2

2. Debt Management Month End .....................................................................4
3. Running the Aging 7 Buckets Report ...........................................................5
4. Running the Unapplied Receipt Register Report .........................................9
5. Reviewing Receipts ...................................................................................10
6. Payment Received - Unapplied to the Invoice ...........................................11
7. Reversing a “Remitted” and “Cleared” Receipt ..........................................14
8. Other Types of Receipts ............................................................................16
9. Reapplying a Receipt to a Different Invoice ...............................................18
10. Finding & Viewing Details of a Customer’s Account ................................20
11. Recovery Timetable .................................................................................22
12. Printing Customer Statement – Stage 1 of the Recovery Timetable ........23
13. Printing and Recording Dunning Letters Stages 2 and 5 of the Recovery
Timetable .......................................................................................................24
14. Calling the Customer and Recording the Details (including disputes)
Stages 3 and 4 of the Recovery Timetable ....................................................26
15. Printing the Collectors Follow Up Report .................................................29
16. Keeping & Viewing Records of Recovery Attempts .................................30
17. Still Non payment …. What next? ............................................................32
Appendix A: Example of a Customer Statement ............................................33
Appendix B: Dunning Letter 1 ........................................................................34
Appendix C: Dunning Letter 2 ........................................................................35
Debt Management Quiz .................................................................................36
Finance Training Page 1 of 38

DM Course Manual v1.9
1. Introduction to Debt Management
Credit control is a vital process that establishes controls both pre and post sales to
ensure a timely recovery of income owed to the University. Many factors need to be
taken into consideration before entering into a contract for the supply of goods or
services to external customers. For detailed information on credit control pre sales
please refer to the Financial Procedures Manual Chapter 8.
Post sales, collecting customer debt is the responsibility of the department raising
the invoice in the first instance; The Accounts Receivable and Cash Management
team in the Finance Division can be contacted for detailed advice and assistance on
specific debts. The University’s Financial Regulations state:
‘With the exception of Research Grant claims, departments are responsible for all
aspects of credit control and for debt collection in respect of invoices issued to third
parties. Heads of Department must ensure that proper procedures are in place to
monitor all debts and follow up overdue accounts and must establish a provision for
any debts considered irrecoverable. A debt is created whenever a credit sale is
made, or any other obligation to pay money to the University arises’
Principles of Credit Control and Debt Management
• To identify over due transactions

• Review customer account details
• Monitor activity
• Resolve overdue and disputed transaction
• Amend the customers account
The Accounts Receivable module of UFS enables departments to manage and

monitor debts efficiently and effectively. Additionally it provides a clear audit trail of
all actions.
It has the facilities to:

• review the status of your customers’ accounts
• produce reports listing outstanding debts for all your customers (whether
overdue or not);
• produce statements and letters;
• record details of any recovery attempts made;
• produce reports that detail what actions are required.
In addition to this manual guiding you through procedures to follow on UFS, detailed
information can be found in the Chapter 8 of the Financial Procedures Manual -
External Trading and Credit Control. Alternatively, contact the Accounts Receivable
Credit Control Helpdesk:
Email: UFS_AR@admin.cam.ac.uk
Telephone: (3) 32205

Debt Management Process Overview
MONTHLY identify all overdue

transactions by running the
AGING 7 BUCKET REPORT
Determine which
customers need to be
followed up
Double check that the

payment hasn’t already
been received
Review Customer Accounts
Pursue the debt using the

recovery timetable and a
suitable method
NON PAYMENT Record Actions taken PART OR FULL

PAYMENT
Consider making a
Bad Debt Provision Receipt on
If part payment
system and
action to be taken
update
for the outstanding
customer
amount
Consider cease
trading with customer
– Contact AR
Write-off the debt
Contact AR Credit
Control for advice on External debt recovery
the following:
Court Action

2. Debt Management Month End
It is a department’s responsibility for credit control and the debt management of their
customers. To assist departments, below is an overview of the month end
procedures that should be followed to ensure accounts are current and up to date.
Further month end procedures can be found in the Income Collection Manual.
Complete AR invoices, credit notes and batch receipts for the month (this is
ongoing).
Print and send AR invoices and customer statements.
Run the ‘Incomplete Invoices’ report to identify any incomplete sales transactions
and complete/cancel transactions as necessary.
Run the ‘Unapplied Receipts Register’ to identify any receipts unapplied to
specific invoices and match these receipts to the invoices report.
Run the ‘Aging 7 Buckets by Accounts’ report to show invoices with no
remittance, review – use for debt management.
Pursue the debt, using the recovery timetable and a suitable method
Record any actions taken
Review and if necessary write-off bad debts (with the Head of Department
approval).
Banking
Complete all receipt batches for cash and cheques received on or before the last
day of the month.
Run the ‘Receipt Register’ report for cash receipt batches.
Arrange for the banking of all monies received up to the last day of the month
(including vending machines, photocopier sales, pay phones, key deposits).
Claim any BACS receipts/bank transfers from the weekly Finance Division
spreadsheet.

3. Running the Aging 7 Buckets Report
As debts become overdue the risk of non-settlement becomes significantly greater.

In order to ensure best practise once credit has been extended for goods and
services provided and the customer has been billed we recommend that you run this
report on a monthly basis.
This report shows all your Sales Invoices for which payment has not been received.
It lists the invoices and groups the amounts by the period of time that they have been
overdue. These time periods are known as “buckets” and the seven time periods
analysed in this report are:
Current
1-30 days past due
31-60 days past due
61- 90 days past due
91 – 180 days past due
181- 360 days past due
361 + days past due
It will give you a total figure of the amount outstanding per customer and an overall
total for all your departments’ external debtors. The report should be run each month
once the AR module has been closed as part of your Department’s Month End
Procedures
UFS Responsibility: AR User / Supervisor
Navigate: Requests >Run
o Once you have navigated via the above path click on ‘OK’ to a single request
o This will take you through to the Submit Request screen
o In the Name field, click on the list of values and select ‘Aging -7 Buckets-By
Account Report’
o The following parameters should be entered:

Complete
the
parameters
as shown.
As of Date
will be the
date your
running the
report
o Once you have selected your parameters click on OK and this will take you to the
next screen
o It maybe worth viewing the report on the screen first, before you print it in case it
is lengthy. To do this click on Option and then amend copies to 0
o Click on Submit.
o A screen similar to below will display

o The screen will not automatically confirm that the report has completed, so click
on Refresh Data every so often to update the status of the report.
o Once the report has completed click on View Output and your print will be
displayed on screen.
o To print the report, close your report view and return to the above screen.
o In the toolbar click on Tools then select Reprint. Ensure you have the correct
printer set up and click on Ok.

Aging 7 Buckets Report Action Points
Determine which customers/specific invoices need action or further follow up.

Maybe beneficial to look at the oldest debt in relation to the amount first
All outstanding over due transactions should be investigated and followed up with
either
o Statements
o Phone Calls
o Dunning Letters
From this report it may become apparent that Customer has already paid their
outstanding debt:
o Receipt has been applied to the customer but not the invoice, leaving the
value unapplied
o Receipt has been entered on CUFS as a miscellaneous receipt directly to

an accounting code and not to the invoice
o Receipt has been applied to the wrong customer or to the wrong invoice
o Carry out a review by running the Unapplied Receipt Report and review
the receipt on the system
o Customer may have paid by BACS so review the unallocated BACS

spreadsheet sent out from Central Finance each week and claim payment

4. Running the Unapplied Receipt Register
Report
After reviewing the Aging 7 Buckets report you may be aware a payment has been
received and processed on CUFS but not applied to the invoice. To establish these
payments you need to run this report.
It will list receipts showing against a customer’s account, but have not yet been
applied to a specific transaction (Sales Invoice). Receipt Batch status will be OPEN
when investigated but should be CLOSED wherever possible. The Batch will close
once all of the Receipts have been applied within the batch.
Responsibility: AR User/ Supervisor
Navigate: Requests > Run
o Click Ok to single request and in the name field click on the list of values and
select Unapplied Receipt Register Report
o The following parameters should be selected then click on OK.
o Again, you may wish to view this report on-line before you print it. Once you have
reviewed the report take the appropriate action (refer to Payment Received
unapplied to invoice, Reversing a receipt and Other types of receipts).

5. Reviewing Receipts
You can view your departments customer receipts on the system.
Responsibility: AR User / Supervisor
Navigate to: Receipts

Receipt Batches
o A new receipt batch screen will display
o To search for a receipt click on the torch icon so that a find screen is displayed
o In the Batch Number field type in the batch number that you wish to view and
then click on find.
o A Receipt Batch screen will display.
o To review click on Receipts and then click on open

6. Payment Received - Unapplied to the Invoice
There may be occasions when a receipt has been loaded on the system that was not
applied to the invoice:
• Receipt has been applied to the customer but not the invoice
• Receipt has been entered on CUFS as a miscellaneous receipt in error
(follow guidance notes on how to reverse a receipt and then follow
guidance on entering a receipt)
• Receipt has been applied to the wrong customer or to wrong invoice
(follow guidance notes on how to reverse a receipt and then follow
guidance on entering a receipt)
• Payment received by BACS and not yet claimed (follow guidance notes
on Other Types of Receipts)
It is important to apply the receipt to the original invoice so that you can confirm that
the customer has paid their invoice.
Receipt applied to Customer but not the Invoice
o Once you have found your receipt (refer to guidance ‘Reviewing Receipts’) a
screen similar to below will be displayed.
o The screen will show that your control and actual totals match but on the right
hand side the amount of the receipt is showing as Unapplied.
o Click on Receipts and this will take you through to the receipt screen.

o Make sure the receipt you wish to look at is highlighted then click on Open.
o In the example above you will see that receipt has not been matched to the
invoice as the Trans Number field is blank. To apply the receipt either simply
type the invoice number into the Trans Number field, or click on the list of
values in Trans Number field and select your customers invoice.
o Once the invoice number is in the Trans Number field click on Apply and the
following screen will display.
o Click the Apply box and the Invoice number will default in the Apply To field and
the amount of the receipt will default in the Amount Applied field.

o Save your work and close out of this screen so you are back to the Receipt Batch
screen.
o The amount of your receipt should be now showing in the Applied field as above
and the status will be closed.

7. Reversing a “Remitted” and “Cleared”
Receipt
If you have applied a receipt to the wrong invoice, the wrong customer or the wrong
amount you will need to reverse it and then re-enter it. Only reverse receipts when
the status field reads ‘Remitted’.
Navigate: Receipts Batches
Reversing a Remitted Receipt
Step 1: Retrieve the Receipt to Be Reversed
From the Receipt summary window, run a query to locate the particular receipt to be
reversed. For example:
• View Query by Example Enter OR View Find.
Step 2: Reverse the Receipt
a) Category: select the ‘Reverse Payment’ option from the list of values
b) Reason: select Payment Reversal from the list of values
c) Comment: This is a free text field to outline any specific reasons for the
reversal.
d) Click on the Reverse button.

Reversing a ‘Cleared’ Receipt
A receipt can be reversed if the STATUS field is marked ‘remitted’ by following the
normal process. However, if the receipt is marked ‘cleared’ it must not be reversed
without further action from Accounts Receivable first. The reason being that the
receipt has already been reconciled to an entry on the bank statement.

8. Other Types of Receipts
BACS Receipts
Once a week Central Finance will send to all Key Contacts, via e-mail, a spreadsheet
listing all the BACS receipts received into the Sterling Bank Account, USD Bank
Account and the Euro Bank Account, that have not been reconciled (matched) to a
receipt on UFS.
The information listed includes: -
• The Date the monies were received onto the bank statement
• The Amount of the receipt
• Any other information provided by the Customer when paying via
BACS
If you find any receipts on the spreadsheet that relate to your department, then
please enter a Receipt onto the system. NB: It is the responsibility of the
DEPARTMENT, to enter BACS receipts onto UFS.
1. Enter a Receipt Batch in the normal way, using the same naming conventions
outlined in the previous section.
Change
Batch
Source
2. However change the Batch Source to “BACS/ Standing Orders”

3. When you have entered your BACS receipt(s) onto the system, please send an
e-mail to UFS_CM@ADMIN.CAM.AC.UK indicating the following details: -
a) Bank Statement Date (As per the spreadsheet)
b) Amount (As per the spreadsheet)
c) Your Batch Number and Receipt Number
d) The line number from the spreadsheet
This information then allows the Accounts Receivable Team to reconcile your receipt
with the payment on the bank statement.
If you have any queries or problems then please e-mail the above address.
Multiple departments receipts

All receipts (invoice and non-invoice related) that are relevant to more than one
department should be entered as normal onto the system. However;
only claim the proportion of the payment that is for your own department (as per
the remittance advice with the cheque); and
then forward the remittance advice and cheque onto the AR Helpdesk via the
UMS, who will then arrange for the remainder to be claimed.

9. Reapplying a Receipt to a Different Invoice
If you realise that you have applied a receipt to the wrong invoice you can reapply it.
However, you cannot reapply a receipt that you have already reversed. In this case
you would have to enter a brand new receipt for it.
Navigate: Receipts Batches
Step 1 - Querying the Receipt to be Reapplied
Navigate to the Applications window. Retrieve the receipt to be reapplied by going

into the View menu, and selecting Find.
a) Enter criteria to restrict the search and click Find
b) The system will display all receipts that meet the search criteria and their
respective applied, unapplied, or on-account amounts.

Step 2 - Unapplying the Previous Applications
Unapply previous applications in the Applications window by clicking on the small
Apply box on the left-hand side of the row.
Step 3 -Reapplying the Receipt
Click onto the next spare row, tick the Apply box on this row and select from the list
of values the Transaction Number (invoice) that you want to reapply this receipt to
and save.

10. Finding & Viewing Details of a Customer’s
Account
Review details of the status of a customer’s account, including transactions and
account balances. If a customer is in dispute with an invoice this must be
entered within Account Details.
Navigate: Collections Account Details
• The following screen will display, enter the criteria to query your customer
accounts you wish to view and click on find
• The following screen will be displayed. You can access a large amount of
information on your customer against each transaction.

• To log a dispute, click in the relevant invoice Number field and scroll to the right.
There are two fields to complete; ‘Disputed Amount’ and the date. Once you
have entered this information save your work then close back to the screen
above and click on disputes to display the record. By logging the dispute here it
will then pull the information through to the original invoice. If you recalled the
original invoice and clicked on the More tab you will see the amount of the
dispute and the date. Please refer to page 26 for further notes on logging
disputes following a phone call.
• Dunning History: Will display details of any dunning letter sent to the customer.
• Dispute History: will show any disputes.
• Call: You can log details of a call along with the outcome relating to the
customer.
• Adjust: do not use.
• Transaction Overview: provides an overview.
• Balances: shows details of original transaction, credits, receipts, adjustments,

discounts and balance, tax, freight charges.
• Details: Displays the original invoice.
• Activities: shows related receipts.
If you have logged a dispute then ensure you run of the

Disputed Invoice Report on a regular basis.
For further detailed information on a customers account please

refer to page 30, Keeping and Viewing records of recovery
attempts.
.

11. Recovery Timetable
Below is an extract from Chapter 8 of the Financial Procedures Manual. It shows the
actions on invoices which are in debt, from Current to 61+ days past due. Debt
recovery should be carried out in sequence as per the timetable.
Whenever you carry out one of the actions you must ensure detailed records are
kept.

12. Printing Customer Statement – Stage 1 of
the Recovery Timetable
In order for debt recovery to be successful it must be proactive, persistent, polite and
professional.
Sending a statement alone is not an adequate form of debt recovery.

Departments should be sending out monthly statements to customer. (Appendix A)
UFS Responsibility: AR User/Supervisor
Navigate to: Print Statements
1. Once navigated via above the following screen will appear.
2. Complete the following fields:
• Option: select Print a Draft Statement for a Customer

• Bucket: click on the list of values and statement will default
• Customer Name: select from the list of values
• Customer Number: will default in one name as been selected. You can
type in customer number and name will default in
• Cycle: click on list of values and Standard will default in
• As of Date: select the date you want the statement to cover up to
3. Click on Options to check the correct printer and copies, before you click on
Submit.

13. Printing and Recording Dunning Letters
Stages 2 and 5 of the Recovery Timetable
Dunning letters are payment reminder letters to external customers and there are
two letters available on CUFS
• Dunning Letter 1: A basic reminder if the invoice is between 1-13

days overdue. (Appendix B)
• Dunning Letter 2: A more formally worded reminder if the invoice is
between 30-60days over due (Appendix C)
A department may devise its own dunning letter to assist in making the debt recovery
process more personalised. If bespoke dunning letters are sent to the customer
manual notes such as date, type of letter sent must be made on CUFS.
CARE! Dunning Letters will only be printed if the customer was set up
correctly
Navigate: Print Dunning Letters
• Click on OK to the single request
• In the name field click on the list of values and select Dunning Letter
Generate
• Complete the following fields:

• Order by: Customer
• Dunning as of date: Information defaults in
• Letter Set Low: External Standard
• Letter Set High: External Standard
• Customer Low: Select customer
• Customer High: Will default in with the same customer name as in
the low field
• Collector Low: Select your department code
• Collector High: Will default in with your department code
• Dunning Method: Defaults in as Days Overdue
• Single Staged Letter: Defaults in as No
• You can choose to print letters for all customers within your department by
leaving the customer low and high fields blank.
• Once relevant field complete click on OK.
• Check your printer options, submit in the normal way and send to customer.
• Once the letter has been printed it will produce a record within Customers,
Customer Accounts. Refer to notes on Keeping Records of Written Recovery
Attempts.
• The system will automatically pick up which dunning letter needs to be sent eg
Dunning Letter 1 already sent, if you followed the process above again it will
automatically print out Dunning Letter 2.

14. Calling the Customer and Recording the
Details (including disputes) Stages 3 and 4 of
the Recovery Timetable
Where possible chasing the customer by phone is easily the most effective collection
method as it offers the opportunity to clarify the situation, resolves any disputes
promptly and build a relationship with the debtor. Remember successful debt
recovery is being polite and professional. Follow these procedures for logging a
dispute following a call and also refer to page 21 for information on disputes.
When contacting the customer you must keep a full record of the actions and record
them in CUFS:
• Date and time of call

• Contacts full name and whether they can authorise the payment
• Reason for non payment
• Outcome of the conversation
Navigate: Collections Customer Calls
1. Once you have navigated via the above the following screen will display
2. Default collector may automatically appear. If not

click on the LOV and select Default Collector. Your
department may have set up Collectors if so select
the correct one from the LOV.
For further information on Collectors refer to the

following link
http://ufs.admin.cam.ac.uk/reference/upgrade/#debt
where you will find a reference guide on setting up
and using collectors

3. In the Trans Num field select the invoice the call relates to and in the Customer
section select your customer name and the number location and address will default
in.
4. In the contact Tab complete the name, and contact details of the person you
spoke with as per example below.
• Click in the Response tab and the following screen will display:
• Response: Select from the list of values

• Outcome: Select from the list of values

• Notes: Could include details of when cheque was sent, cheque number
and any other relevant information. This information will appear on the
Collectors Follow Up Report.
• Follow Up Action: Select from the list of values. A report can be
produced to show all customers that require a follow up (refer to section
on ‘Collectors Follow Up Report’)
• Date: Input a date when you would like to carry out the follow up
• Complete: Select this once the cheque has been received so that it no
longer appears on your Collectors Follow Up Report’
• You have the option on the screen to complete the ‘Promise’ section
• Save your work and a Call ID number will appear in the top left hand box.
• Click on Topics. On the Main screen ensure the Invoice number has pulled
through otherwise select it from the List of Values. Complete the remaining fields
then click on the Notes and input notes regarding the call and response. All the
information you input here as well will pull through onto the Collectors Follow Up
Report.
• Save your work.
• You can view any correspondence made by following the procedures on

‘Keeping and viewing record of Written Recovery Attempts’.
If you have logged a dispute then ensure you run of the Disputed
Invoice Report on a regular basis.

15. Printing the Collectors Follow Up Report
Once you have logged a call and follow up is required we recommend you run this
report on a weekly basis to assist with the recovery of debt.
Navigate: Requests Run
1. Click OK to a single request
2. In the name field select ‘Collectors Follow Up Report’
3. In the parameters fields input ‘Default Collector’ unless your department has
set up Collectors in which case select the relevant collector using the list of
values in Collector Name low and high. For the Follow Up Date fields select
the date parameters.
4. Click on OK
5. Check your printer options are set up correctly. You may wish to run zero
copies incase there are a few pages and then print it.
The report will show you the last time you called the customer, relevant
notes, and what the customer response was last time you called and what
follow up is required
For guidance on what a Collector is, how to set one up

and also how to use them please refer to the following
link
http://ufs.admin.cam.ac.uk/reference/upgrade/#debt

16. Keeping & Viewing Records of Recovery
Attempts
If a bespoke dunning letter is sent then a comment must be added to the notes
screen of the relevant transaction.
When you produce a standard Dunning letter, Statement or log a call on CUFS a
record of this correspondence will be produced automatically in Collections,
Customer Accounts. You can also access this via Collections, Account Details
Navigate: Collections Customer Accounts
• Find your customer by either searching for the Customer name or inputting the
Customer number and then click on find as per screen below
• An example of the screen displayed is below
• From this screen you can view the following:
o Customer: takes you into the customer database

o Account Overview: displays customer transactions
o Call: to view detailed call information
o Aging: Shows invoices due and age of debt

o Account details: More detailed individual transaction information (log a
dispute here)
o Correspondence: the following screen will display.
o The calls screen shows information relating to the call but for detailed
information click on the Call button. Then use the up and down arrows to
view all the calls logged. You can also view details by clicking on Topics.
o Review when statements or dunning letters have been sent by either

clicking on Statements or Dunning Letters tabs.
o Account Details will take you through to the screen that displays all the
transactions loaded for that customer.

17. Still Non payment …. What next?
If after all possible recovery approaches have been completed, the debt is still
outstanding then there are various options available to departments.
Interest: If an invoice becomes 60 days old you may advise the customer that
interest will be charged if payment not received within x number of days eg 14. Care
many factors need to be taken into consideration.
Payment Plans: This should not be agreed by departments at the time of billing.
Any proposals from the customer must be made in writing and should not be agreed
or disagreed with until further investigation and consultation with the Accounts
Receivable team in the Finance Division.
Legal Recovery: Before departments go down this route it is vital that every effort
has been made with the customer to collect the debt eg calls, letters, all financial
procedures and regulations have been adhered to and evidence can be provided of
recovery attempts.
You must contact the AR team to receive further information on the costs, feasibility,
process and documentation required. The department must bear the costs of any
legal action they take. If is it suitable for pursuing in the Courts then all required
documentation must be authorised by the Head of Department and sent to Legal
Services. Formal consent must then be obtained from the Registrary in accordance
with financial regulations.
Bad Debt Provision: All invoices that are 60+ days overdue will have a bad debt
provision posted against them to account for the risk of non settlement. The
information is transferred into the General Ledger module at the end of the month
once AR module has closed. The value of the bad debt is determined by the age
and the balance due.
• 60-182 days overdue: 25% of the balance due

• 183-364 days overdue: 50% of the balance due
• 365+ days overdue: 100% of the balance due
Account Analysis Report can be run within GL responsibility using transaction code
FJNA (Bad Debt Provision code).
Writing off Debts: If after all reasonable recovery attempts have been taken and the
debt is still overdue then the invoice can be written off. Information such as invoice
number, balance due and reason for the write off must be sent to the AR team and in
return a form will be sent to the department which must be signed by the Head of
Department. The form then needs to be returned back to the AR team for the
adjustments to be made on CUFS.
Cease Trading: Care, refer to AR team for guidance.
For more detailed guidance on any of the above please refer to sections 5.7-
5.10, Chapter 8 of the Financial Procedures Manual or the Accounts Receivable
team.

Appendix A: Example of a Customer Statement

Appendix B: Dunning Letter 1
University of Cambridge
Finance Division
The Old Schools,
Trinity Lane
Cambridge
Cambridgeshire
CB2 lTS
United Kingdom
ADDENBROOKES HOSPITAL NHS TRUST Date: 18-FEB-2007

Finance Department
ADDENBROOKE'S
Box 130
United Kingdom
Dear Sir/Madam,
I write with regard to the invoice(s) detailed below, which, according to our records,
appear to be outstanding.
Invoice Invoice Days Invoice Amount Balance

Due Number Date Due Date Late (GBP)
(GBP)
--------- -------- -------- ----- ------------ -----------
8XXX5 14-JAN-07 13-FEB-07 5 101.99 101.99
8XXX0 31-JAN-07 02-MAR-07 -12 25.85 25.85
Total 127.84
Please arrange for payment to be made within the next 7 days. If payment has been
made within the last 5 days, please disregard this reminder.
Should you have any unresolved problems concerning your account or require any
further details, please do not hesitate to contact me immediately.
I look forward to hearing from you.
Yours faithfully
Department of XX

Appendix C: Dunning Letter 2
University of Cambridge
Finance Division
The Old Schools,
Trinity Lane
Cambridge
Cambridgeshire
CB2 lTS
United Kingdom
ADDENBROOKES HOSPITAL NHS TRUST Date: 25-FEB-2007

Finance Department
ADDENBROOKE'S
Box 130
United Kingdom
Dear Sir/Madam,
It would appear from our records that despite previous correspondence, the account
detailed below still remains unpaid.
Payment should be sent immediately to the above address.
Invoice Invoice Days Invoice Amount Balance Due

Number Date Due Date Late (GBP) (GBP)
--------- -------- -------- ----- --- ---------- ------------
8XXX5 14-JAN-07 13-FEB-07 5 101.99 101.99
8XXX0 31-JAN-07 02-MAR-07 -12 25.85 25.85
Total 127.84
Should there be any issues relating to this account that are causing delay in
payment, I would appreciate your call to this office urgently, so that I can help to
resolve the problem.
Failure to reply immediately with either your query or remittance will lead to your
account being forwarded to our debt management section [and may result in interest
being charged if payment continues to be outstanding.]
Yours faithfully
Department of XX

Debt Management Quiz
1. What report should you run at the end of every month once the Accounts
Receivable module has closed?
2. What does this report show and how will you use it?
3. What are the 7 buckets of time?
4. Name as many of the different recovery methods and when you would use
them.
5. Which tool is available on CUFS that is not an adequate form of debt

recovery?
6. Where would you go to log a customers call and response?
7. What report would you run that detailed actions required after a call has been
made?

8. If after all possible methods of debt recovery have been exhausted what
options are available for you? List as many as possible.
9. How old must a debt be before we may start charging them interest?
10. Who does Legal need to get formal consent from should they pursue the
debt in the Courts?


Debt Management

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Debt Management

1. Introduction to Debt Management................................................................2

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Principles of Credit Control and Debt Management

• To identify over due transactions

The Accounts Receivable module of UFS enables departments to manage and

It has the facilities to:

Telephone: (3) 32205

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MONTHLY identify all overdue

Double check that the

Review Customer Accounts

Pursue the debt using the

NON PAYMENT Record Actions taken PART OR FULL

Write-off the debt

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As debts become overdue the risk of non-settlement becomes significantly greater.

UFS Responsibility: AR User / Supervisor

Navigate: Requests >Run

o This will take you through to the Submit Request screen

o The following parameters should be entered:

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o A screen similar to below will display

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Determine which customers/specific invoices need action or further follow up.

o Receipt has been entered on CUFS as a miscellaneous receipt directly to

o Customer may have paid by BACS so review the unallocated BACS

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Responsibility: AR User/ Supervisor

Navigate: Requests > Run

o The following parameters should be selected then click on OK.

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You can view your departments customer receipts on the system.

Responsibility: AR User / Supervisor

Navigate to: Receipts

o A new receipt batch screen will display

o A Receipt Batch screen will display.

o To review click on Receipts and then click on open

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Receipt applied to Customer but not the Invoice

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UFS Responsibility: AR User / Supervisor

Navigate: Receipts Batches

Reversing a Remitted Receipt

Step 1: Retrieve the Receipt to Be Reversed

• View Query by Example Enter OR View Find.

Step 2: Reverse the Receipt

b) Reason: select Payment Reversal from the list of values

d) Click on the Reverse button.

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2. However change the Batch Source to “BACS/ Standing Orders”

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a) Bank Statement Date (As per the spreadsheet)

b) Amount (As per the spreadsheet)

c) Your Batch Number and Receipt Number

d) The line number from the spreadsheet

Multiple departments receipts

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