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- Accounts Receivable System
- Features
- Credit controls
Credit controls
Credit controls connects customer limits, active holds, late-fee assessments and write-off decisions. These controls serve different purposes: a hold restricts future billing, a late fee creates a separately supported charge, and a write-off removes an approved uncollectible amount through the accounting route. Keeping their records separate helps the team explain why an action was allowed and who authorized the financial change.
OverviewPending Write-Offs×
Accounts Receivable System · Credit controls
New
Pending Write-Offs
Write-off approval waits for the controller / cfo
| Write-off number | Invoice | Customer | Amount | Reason | Requested by | |
|---|---|---|---|---|---|---|
| WO-12605 | Harborwick equipment rental, May | Cedar Finch Manufacturing | 14,192.01 | Bankruptcy | Devin Shah | |
| WO-31809 | North Alder maintenance, August | Cedar Finch Manufacturing | 11,470.54 | Uncollectible | Lucia Moreno | |
| WO-26540 | Cedar Finch monthly service, May | Juniper Crest Foods | 6,943.28 | Below threshold | Rafael Costa | |
| WO-18340 | Blue Vale parts shipment, July | Harborwick Marine Supply | 32,147.99 | Settlement compromise | Hana Park | |
| WO-80033 | Cedar Finch monthly service, May | Ternfield Energy Services | 2,826.16 | Other | Devin Shah |
6 of 6 records
Harborwick equipment rental, MayWrite-offs · WO-12605
BankruptcyCustomerCedar Finch Manufacturing
Amount14,192.01
Requested byDevin Shah
Write-off date01 Nov
What you can do
Manage holds deliberately
Credit holds record the customer, reason, initiating identity and date. The configured aging and credit-limit checks can raise a hold for the AR Manager to review. While active, the hold prevents the applicable invoice sends and recurring generation. Releasing one hold does not prove that all other customer restrictions have disappeared. Keep the underlying balance and credit-review evidence available, and test both the blocked and permitted paths before enabling automated hold creation for the full customer population.
Review fees and their corrections
Late fees record the assessed amount and links its follow-on invoice to the original obligation. Apply the customer’s verified effective policy; the website does not prescribe a universal fee or legal rate. A repeated monthly run must not assess the same fee twice. When the AR Manager waives a fee, retain the waiver and reconcile the corresponding invoice adjustment. A sent or posted fee cannot be erased as though the customer document and ledger effect never existed.
Approve write-offs before posting
The AR Manager prepares write-offs with the invoice, customer, requested amount and reason. Controller / CFO decides the pending request. Approval authorizes the accounting handoff; Posted requires the confirmed ledger result. Only the posted amount reduces the invoice through write-off applied, and a partial write-off leaves the remaining balance collectible. Reversal retains its own source and restores only the affected reduction. Review the amount against current open AR so simultaneous payments, credits or another write-off cannot extinguish the same obligation twice.
What your team sees
- Pending Write-Offs. Open the related records within your assigned scope.
- Active Credit Holds. Open the related records within your assigned scope.
What it keeps track of
Data model- Credit holds
- Customer-level credit hold. While Active, no new Invoices may be sent and no recurring invoice schedules generate for the Customer.
- Late fees
- Late fees applied per billing term late fee policy. Each late fee spawns a follow-on Invoice of
Type: LateFeelinked back viaOriginalInvoice. - Write-offs
- Uncollectible AR written off the books. Requires Controller approval; posts a JE in fin-accounting that contras the AR balance and hits Bad Debt Expense.
- Invoices
- The customer invoice — the AR atom. Header carries totals; detail lives in invoice lines.
- Customers
- The AR-grain customer record. May shadow a CRM Account; this row carries the credit, billing, and dunning fields finance owns.
- Billing terms
- Catalog of payment terms. Net 15, Net 30, Net 60, Net 90, EOM, Prepay, Due on Receipt, plus optional late-fee rule.
Who uses it
Permissions- AR Manager
- Manages credit holds, fee review and write-off requests.
- Controller / CFO
- Approves write-offs and higher-value adjustments.
- AR Clerk
- Sees the controls that affect permitted billing and application work.
Set up Accounts Receivable System your way.
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