AP and AR trial balances need to be manually reviewed to determine the net balance for entities that are both a customer and a vendor.
Payments are made to vendors who are also customers and who actually owe the company money.
You have to enter in transactions to clear the AR or AP balance and then enter additional transactions in the opposite module.
Transactions could be entered incorrectly or missed, causing great difficulty in recovery of those transactions.
Collection efforts are made for customers who do not really owe you money.
You have difficulty managing customers who are national accounts.
There are problems with the way you manage them. You manually group customers for credit watch.
There is unacceptable credit exposure to customer groups.
Payments are sometimes misapplied. You are not able to follow up on collection issues in a timely manner, or you are not able to follow up at all.
You are incurring increasing bad debt.
Receivables are too high.
You are missing deadlines and follow-ups.
When a new trial balance is printed, all the notes are transferred to the new report.
You have a manual process to generate collections letters and emails for each customer.
The activity is redundant.
Letters are processed manually for customers with past due accounts, but that takes too much time.
Emails are typically generated either one at a time, in batches, or in groupings. Hard copies of letters are kept to track the history, but that costs too much.
You are unable to analyze customer data.
You have to manually review AR aging to identify customers who have or who are developing credit issues.
You are unable to capture all customers that are in need of collection efforts.
Tracking account history is difficult.
When a new trial balance is printed, not all the notes are transferred to the new report.
If a legal situation arises due to the nonpayment of invoices, your company does not have all proper collection documentation.
This information is not recorded manually.
There is a potential that information could be lost.
