Sales or Credit – who collects on a past due invoice?

We have a small mfg. company so everyone wears many hats. When there is an issue with a customer’s bill, the office staff kicks the order back to the salesperson, saying they should clear it up with “their” customer, and that they are too busy. Sales feels the office should handle it as it is now an accounts receivable problem. Their example is the furniture store or the car dealer, “you never hear from the salesperson when there is a problem with an account, it’s always the office or credit dept.”

Who is right?  Thanks, Bob

Dear Bob,

Normally the sales department is only called back in to collect once the A/R or Credit Department is unable to get the past due person to pay.  Often sales is not paid their commission on a sale until the bill is PAID, not when the sale is made – therefore ensuring they will help to get the bill paid and will not oversell so that payment is a problem.

I hope this helps! Michelle

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One Response to Sales or Credit – who collects on a past due invoice?

  1. Dean Kaplan says:

    We often find that sales people don’t want to get involved with past due invoices because to them, collecting feels like conflict. But, collections do not have to be handled that way. One sage credit manager always reminded the sales staff that it is easier to keep a customer then to find a new one, but until the past due invoices are paid, they can’t be a customer for new orders. That tended to motivate the sales staff to help when appropriate.

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