PURPOSE:
To manage and control the company’s accounts receivable, credit risk, and collections, ensuring timely realization of revenue, reduction in DSO, and strong working capital discipline while supporting business growth.
ROLES & RESPONSIBILITIES:
A. Credit Control Management
- Define and implement customer credit policy (limits, terms, approvals):
- Evaluate customer creditworthiness and assign credit limits:
- Monitor credit exposure vs. limit:
- Approve / block orders based on credit status
- Establish credit risk classification (Low / Medium / High)
B. Collection Management
- Drive customer collections as per due dates:
- Implement structured collection cycle (reminders, follow-ups, escalation):
- Track collection commitments vs. actual:
- Lead weekly collection review meetings with Sales & Finance:
- Ensure reduction in overdue and ageing buckets
C. Accounts Receivable & DSO Control
- Monitor and control:
- DSO (Days Sales Outstanding)
- Ageing (0-30 / 30-60 / 60-90 / >90)
- Identify high-risk customers and overdue accounts:
- Drive initiatives to reduce DSO from current to target levels:
- Ensure reconciliation of customer accounts
D. Cross-Functional Coordination
- Work closely with:
- Sales Team → collection ownership & customer follow-up
- SCM / Dispatch → enforce dispatch block for overdue customers
- Finance → cash flow planning
E. Governance & Reporting
- Prepare and publish:
- Daily collection tracker
- Weekly AR dashboard
- Monthly working capital report
- Present AR performance in management reviews:
- Maintain documentation & audit readiness (ISO / QMS)
F. Process Improvement (CI Focus)
- Implement continuous improvement initiatives in AR processes
- Automate tracking systems (ERP / Excel dashboards)
- Improve collection efficiency & reduce manual dependency