Payment Management

Payment Reminder

Most companies selling products on credit will sooner or later come across customers who do not pay. In these instances, you can either post the customer's outstanding payment as a loss or try to recover the debt.

The first thing you can do is to send a payment reminder and/or a notice of debt collection to the customer. In your Mamut system, this is done via an easy-to-use wizard.

In Mamut Business Software, you can choose to send payment reminders with or without credit charges to customers who do not pay by the due date. You can define the number of payment reminders you wish to send, and at which payment reminder level you wish to apply credit charges. You can also create and link late charge groups to payment reminder levels, and then link customers to the various payment reminder groups.

The system also gives you the possibility to send credit charge invoices to your customers after the debt has been paid - regardless of whether or not you chose to include late payment interest on the payment reminders. Read more about credit charging below.

You can define the settings for payment reminders via View - Settings - Accounting - Customer & Supplier Ledger.

Read more about payment reminders in About Payment Reminders/Debt Collection Notice.

Factoring

An alternative to dealing with credit management on your own is to sell your outstanding payments to a factoring company, which in turn will follow them up and keep the payment. All invoice follow-up is thus handled by the factoring company, saving you time and guaranteeing you a steady income.

You can define the settings for factoring via View - Settings - Accounting - Customer & Supplier Ledger.

Read more in Factoring.

Credit Charging

The credit charging feature allows you to charge late-paying customers for lost interest income. Lost interest income due to customers who make late payments can reach a significant amount in the course of the year. Some businesses choose to invoice interests in order to compensate for this loss.

Within Mamut Business Software, you have different options for claiming lost interest income. You can chose to add credit charge interest to your payment reminders, or you can send separate credit charge invoices after the debt has been paid. Please note that if you add credit charge interest to your payment reminders, the interest will accrue until the debt has been paid in full. Therefore, if you wish to claim the interest that has accrued in the period between issuing the payment reminder and the actual payment date, you can create a separate credit charge invoice.

Note! In order to demand interest payment on overdue invoices, there are formal requirements that must be met in regards to the original invoice and the credit charge invoice. Please refer to the relevant laws and regulations or contact your accountant for more information.

You can define the settings for credit charging via View - Settings - Accounting - Customer & Supplier Ledger.