When do we hand over a debt to collections, and how do I book it?
Handover to collections is in our experience reasonable from +60 or +90 days past due, provided you sent 2 reminders and the customer no longer responds. The receivable stays on the books, but you add a provision.
Try this first
- 1Log your collection contacts (mail, phone, date) up to handover, the agency needs this.
- 2Send a final notice with a 14-day term, then hand over.
- 3Create a 'doubtful debtors provision' account in your package and book the full open amount there, conservatively.
- 4On receipt via the agency you book actual receipt against the receivable and the provision releases for the difference.
- 5Get a specification of collection costs so you can book them on a separate cost account.
When to bring us in
If you structurally face arrears and want a watertight collections flow with your accountant, we can set it up.
See also
- Switching from Exact Online to Yuki, open items and history do not matchPackage migrations stumble on ledger mapping and open AR/AP. Without a mapping table you lose context.
- Twinfield to Exact, dimensions and cost centres go missingTwinfield uses dimensions, Exact uses cost centres and projects. The mapping is not one-to-one.
- Accountant asks for RGS mapping, your ledger does not follow RGSRGS is the Dutch standard chart that SBR filings and accountant software expect. Without mapping, every year-end is manual.
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