This work instruction is part of the guide Setting up your insurance solution.
Purpose of this document
The purpose of this documentation is to describe best practices and configuration options for accounts receivable management at an insurer or power of attorney. The accounts receivable management component (M3255) is the core component of this functionality, but several add-ons have since been developed, namely:
- M11097 Direct debit in case of reversal
- M11004 Termination of insurance in case of non-payment
Process overview Accounts receivable management
From an insurer or agent’s perspective, it is important to distinguish between the accounts receivable process for the payment methods “Direct debit” and “On account.” This mainly has to do with the difference in the first two phases of the process. Whereas with “on account” invoices you only send a reminder, in the event of a direct debit reversal it is often desirable to integrate a second (or possibly third) attempt into the debtor process. Below is an overview of the different phases that are configured in the standard datasets (id 3199 and 3200) for the two payment methods mentioned.
- “On account” debtor process
- Phase 1: First reminder;
- Phase 2: Second reminder
- Phase 3: Warning
- Phase 4: Cancellation of insurance
- Debtor process “Direct debit”
- Phase 1: Second direct debit attempt
- Phase 2: Request to transfer payment yourself
- Phase 3: Final reminder
- Phase 4: Insurance cancellation
Setup
This chapter explains the various configuration options available for setting up debtor management in a Novulo Insurance Application:
- How is the debtor process template selected for an invoice?
- Invoice due date
- Configuration options for a debtor process template
- Configuration options for a debtor process template phase
- Additional collection attempt in case of reversal of a collection run
- Canceling insurance policies in case of non-payment
Selecting the debtor process template for an invoice
The selection of the debtor process template for an invoice is done in an insurance application via the selected invoice template for the insurance (if the insurance is part of a package, the invoice template at package level determines the invoice template). Invoice templates can be found under All apps – Settings - Invoice templates
Invoice due date
The due date for an invoice is determined by the invoice date plus the payment terms of the invoice. In the insurance application, the payment condition, just like a debtor process template, is also based on the selected invoice template. The due date of an invoice is always derived from the invoice date (for sales invoices, the invoice date is by default today’s date) plus the number of days of the payment condition. For the two payment methods mentioned, it is advisable to set the payment terms of the “Direct debit” invoice template to “Immediately” (number of days = 0). This means that if a reversal is made, the two attempts for the direct debit will be carried out immediately.
Debtor process templates
The Debtor process templates overview can be found under
All apps – Settings - Debtor track templates.
Below are a number of fields that are explained in more detail from the track template
“Op rekening (standaard)”:
- For specific payment method; applicable to the “direct debit” template, because the “2nd attempt” phase is specifically intended for the payment method of the same name.
- Send by email; currently the default, but there is an option to generate a PDF with all reminders when performing a reminder run (debtor process) and then print it.
- Include original invoices; if checked, this check mark is transferred to the debtor process phases, so that the original invoice documents are sent as attachments to the email. If no email is sent, the checkbox does not apply.
- Check for open bank statements: if checked, when finalizing the debtor process batch, a dialog box will be displayed to the user if there are draft bank statements in the application. The user can then decide to continue with the batch or to abort the process and focus first on processing the bank statements, which may of course affect the outstanding amounts of the invoices.
Phase templates for debtor process templates
From a debtor process template, it is possible to create one or more phase templates. The phases follow each other sequentially, as shown below.
- Sequence number; determines the order in which the phases are executed
- Days after last phase; if it is the first
- Create activities when phase begins; if the draft phase is prepared, the activity based on the activity template is also created immediately.
- Activity template; previously, it was only possible to add an activity template of the document type here. This document was generated upon execution and then sent as an attachment to the email (based on the email template in the debtor process template). Nowadays, it is also possible to select an activity template of the email type so that you can send the reminder inline.
- Complete sets status to: the status that the debtor process receives when the phase is completed.
Additional collection attempt in case of reversal of a collection run
The fields below are available for the first two phases of the ‘direct debit’ template because the ‘for specific payment method’ check box in the template is set to ‘direct debit’.
- Days between reminder and execution of the new collection attempt; based on this setting, the execution date of the collection order will be the date of execution of the debtor process batch plus the number of days entered in this field.
- Number of failed collection attempts before this phase can be started; the phase is only created when running the debtor process batch if this number of reversals has been reached.
Cancellation of insurance policies in the event of non-payment
For the final phase, the checkbox below is ticked. The number of days is shown.
If the checkbox is ticked, an additional overview appears: “Templates for terminating insurance policies in the event of non-payment”. Here, one or more templates can be set up to determine what happens to the insurance policies related to the invoice that cannot be collected.
In this template, it is possible to determine the reason for creating an insurance version by filling in the Reason field. Using Novulo expressions, it is also possible to determine which template should be applied ‘applicability’ and which cancellation date should be used.