CHAPTER 3: CUSTOMER MASTER FILE
As the first step, the CMF specialist should double-check the name in the database to see if it already exists, since the specialist is the expert in finding accounts in the CMF. If the name is already there, check to see if any of the information—such as address, the line of credit, or terms—needs to be updated. Then document the customer number and return it to the credit manager, with a copy to the sales rep assigned to that account. If a new customer is being entered, the CMF specialist should audit the information provided to ensure its accuracy before entering it into the database. Verify that sanctioned/ blocked party lists have been checked and verify that the requested data matches the supporting documents (see Verifying Customer Data, below). Here is a list of basic information that the system may need for each customer (not all the information will be necessary—this depends on whether the transaction is B2C or B2B): Customer name—legal name as found on driver’s license; legal entity name as found on tax certificate and DBA name Type of legal status—B2C: single, married; B2B: corporation, llC, etc. Billing address (for B2B, make sure you request the accounts payable address) Delivery addresses (essential for calculating sales tax) B2B: Headquarters address Contract terms
Discounts Credit limit Contact name Contact phone number (cell, home/office, and fax) Contact e-mail address Credit Bureau Rating Tax ID (copy of tax certificate) Other data based on your industry requirements
Many businesses are refraining from entering information that needs to be updated often. For example, a best practice for B2B is to not add personal contact name, e-mail address, or phone numbers, but to include the company website where this information can be obtained by those who need to call the company. This saves time and money by eliminating the need for constant updates to the CMF due to changes to personal names, e-mails, and phone numbers. EXISTING CUSTOMERS While anyone in the company who deals with customers may request that the CMF record be updated, a decision has to be made as to who will validate this information and what information can be changed. For instance, the CMF specialist could be required to obtain a credit management signature on certain changes (like name changes or credit limit), while the CMF specialist could approve address changes (which are the most common changes). This data could be verified by calling the old phone number—or sending a mailing to the old address—to confirm the change. It is critical to document changes and maintain the supporting documentation.
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THE ACCOUNTS RECEIVABLE SPECIALIST CERTIFICATION PROGRAM E-TEXTBOOK
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