Purpose

If a customer does not pay his receivables, and all measures have been taken to collect the receivables, many companies use collection agencies to prevent losing the receivable.

In the case of receivables for which court cases have been initiated or where a court order has been issued for collection (legal dunning proceedings), these receivables are managed in some instances using third-party applications.

Contract Accounts Receivable and Payable enables you to manage postings connected to submitting receivables to a collection agency and the exchange of information with those collection agencies.

For managing receivables for which legal dunning proceedings have been initiated, it is necessary to set up collection agencies in Contract Accounts Receivable and Payable for the third-party applications that are used.