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Collections
Collections
The process of recovering invoices that are past due, from reminders through to escalation and write-off.
Collections is the work of getting overdue invoices paid. It runs from an automated reminder, through a named owner making contact, to escalation, a payment plan, or eventually write-off.
It is distinct from dunning, though the terms are used loosely. Dunning is usually automated recovery of a failed card payment on a self-serve subscription; collections is usually a human process against an invoiced enterprise account on net terms.
Effective collections is mostly prioritisation: ranking by likelihood of recovery and value, not by ageing alone, and knowing which invoices are disputed rather than simply unpaid.