Outside Collection Services

Based on review of the monthly Aging Report (see ZAR2 - Run aging report by dunning area) and MIT parameters for outside collection (described below), A/R personnel each month prepare a list of customers to be placed with an outside collection agency. This list will be forwarded to the Assistant Controller responsible for A/R for approval.

Customer balances will be brought to zero ($0) by means of a credit memo (see F-27 - Enter credit memo) with an offsetting debit to the Cost Center/Profit Center of the originating department. In addition, customers placed in collection will be blocked (see FD05 - Block/unblock customer services/ charges/ payments) from further posting in SAP with appropriate notification to departments.

MIT Parameters for Outside Collection

• Accounts overdue in excess of 120 days;
• Receivable balance in excess of $50;
• Departments have been notified not to provide the customer services;
• The customer has been blocked in SAP from further posting;
• A final notice (dunning level 3) of MIT's intention to place the receivable with an outside agency has been sent to the customer.