Collections follow-up: Meaning and Definition

What does collections follow-up mean?

Collections follow-up is another name for Dunning. Dunning is the systematic process of sending increasingly firm payment reminders and collection notices to customers with overdue invoices.

The two names mean the same thing. You will see "collections follow-up" in some ledgers, reports and contracts and "Dunning" in others. The full entry covers how it works, with examples.

Read the full definition of Dunning

Topics

Collections and DSO

From the glossary

Related terms.

Collections and DSO Dunning Dunning is the systematic process of sending increasingly firm payment reminders and collection notices to customers with overdue invoices. Also called payment reminders, dunning process, collections follow-up Accounts payable Accounts Payable (AP) Money a business owes to its suppliers and vendors for goods or services received but not yet paid for. Also called trade payables, sundry creditors, payables Invoice processing Invoice Management The end-to-end process of creating, receiving, tracking, approving, and processing invoices for timely payments and accurate financial records. Also called invoice processing, invoice handling, invoice workflow MSME payments MSME (Micro, Small and Medium Enterprises) A government classification for businesses based on investment and turnover that enables access to subsidies, priority lending, and special schemes. Also called micro and small enterprises, Udyam registered enterprise, MSE Collections and DSO Aging Report An aging report categorises outstanding accounts receivable by the length of time invoices have been unpaid, helping businesses identify overdue payments and collection risks. Also called ageing report, AR aging report, accounts receivable aging Collections and DSO Bad Debt Bad debt refers to accounts receivable that a business determines are uncollectible and must be written off as a loss, reducing both assets and revenue. Also called bad debts, irrecoverable debt, uncollectible receivable

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