Credit Risk

What is Credit Risk?

Days Beyond Terms (DBT) Trend Analysis  measures customer payment performance bills against the credit terms of their invoices. Many ERP systems cannot calculate DBT performance. Customer deductions and disputes distorts the accuracy of this calculation in ERP systems. Most corporate credit departments have too many accounts and lack sufficient analysts to monitor each one.

Cashbook’s Credit Management Automation leverages payment trend information that is locked within your accounting system to alert when a customer is at risk. Automatic notifications are triggered when a customer exceeds preset thresholds. Follow up tasks are created and assigned to credit analysts to perform comprehensive risk assessment.

Separate “clean and dirty” receivables tracking improves the accuracy of our DBT and trend analysis. Clean receivables are defined as transactions that are not disputed. Dirty receivables includes transactions that are either deductions or disputes. Separate tracking of these two classes quickly identifies the correct amount that each customer “should” by paying to keep their account current.


Improve Customer Credit Risk Assessment:

  • Calculates Days Beyond Terms with trend analysis
  • Monitors consumption of credit limit
  • Separately tracks “clean and dirty” receivables to improve the accuracy of individual customer Days Beyond Terms analysis.
  • System can automatically pull credit data from third party credit services including DnB, Experian, Equifax, Graydon, NexisLexis and EDGAROnline.
  • Automatically flags customers with deteriorating credit metrics to analysts for in-depth evaluation.
  • Maintains an audit trail of customer credit history and rating actions.
  • Set thresholds for different customer sizes and industries.
  • Handles seasonality automatically.
  • Automate and improve Cash Forecase Accuracy.
  • Works with any ERP system(s) including SAP, Oracle, Baan, Lawson, PeopleSoft, JD Edwards, BPCS, MAPICS, Dynamics, Progress, QAD and most other ERP Systems.

Key Features:

  • Auto DBT Trend Analysis
  • Credit Reporting
  • Create & Assign Follow-Up Tasks
  • Track “Clean & Dirty” Receivables
  • Set Rules by Customer Type
  • Create an Audit Trail
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