CHAPTER 3: CUSTOMER MASTER FILE
The CMF specialist must validate additions and changes since many fraudsters look legitimate.
A workflow between Credit Manager and CMF specialist would consist of the following eight steps: 1. A company staff member, such as a sales representative, completes an order with a new customer. 2. The sales rep assists the customer in completing the new customer application form. 3. The form is forwarded to the accounts receivable department. 4. A customer master file maintenance specialist then researches the request to ensure that the customer is not a duplicate, is not on the blocked list, and exists as a real company (other sources). 5. If the new customer is valid, the credit manager, after doing a financial in-house scorecard, assigns the line of credit and terms. 6. The CMF specialist obtains the necessary information, confirms the information, and enters it into the master file. 7. The specialist notifies the credit manager of the account number. 8. The Customer Welcome letter is sent to the new customer, with a copy to the sales representative.
3.4 Verifying Customer Data
Obtaining the correct customer data is one of the hardest aspects of establishing and maintaining the database, especially within a timeframe that will allow the operations group to ship the order based on the customer’s expected delivery date. Confirming data validity is absolutely crucial because minor errors can cause major problems. Examples of such problems include charging wrong amounts if discounts or other terms are incorrect, paying late or inaccurate commissions to sales staff, and angering good customers whose payments aren’t recorded. Flawed or incomplete data can compromise customer analysis, leading to missed opportunities to anticipate wants and provide more highly valued goods or services. In B2B organizations, the billing address that is entered must be the customer’s accounts payable department. The number-one reason invoices are paid late is that the AP department has not received the invoice. When the invoice becomes past due, a collections specialist calls or sends a letter to the customer requesting payment. Simply having the accounts payable department address could avoid these late payments. It is critical that the CMF specialist validates the information that is provided before entering it into the system because the CMF specialist is opening the account in his or her name, by way of their login ID. As an internal control, the CMF specialist must approve what they are entering, which means validating the data. Is the consumer or business that is being entered a legitimate individual or company? One way to determine this is by checking the supporting documentation or rechecking the sources (like the blocked list and government agencies). It is critical to ensure that the consumer or company can legally be a customer.
41
THE ACCOUNTS RECEIVABLE SPECIALIST CERTIFICATION PROGRAM E-TEXTBOOK
Made with FlippingBook - Online catalogs