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Credit And Collection Department - Coggle Diagram
Credit And Collection Department
relationship of credit department and credit policy
credit policy
is implemented before the credit debt is established
credit department
task with making sure those procedures are complied with.
Centralization
credit function is controlled and administered from a principal or central location.
benefits of centralization
speed up receipt of payments
fewer checks per customer
reduction in number of lockboxes
Decentralization
credit function may be reporting to a principal location with credit personnel
benefits of decentralization
faster response time
enhanced relationship with customers
Management Responsibilities
planning
organizing
staffing
leadership
control
Business Organization
develop credit application
keep credit recprds
produce accurate invoices
establish a credit policy
deal with past due and deliquent accounts
measure effectiveness performance
Goals of credit department
bad debt
increase of timely payments