Overview

The Accounts Receivable (AR) Service manages all outstanding customer invoices, tracks payment collection efforts, and maintains customer credit information. It automates the dunning process to improve cash collection.

Key Responsibilities

AR Balance Management

• Track total outstanding balance per customer
• Maintain aging buckets (current, 30, 60, 90+ days)
• Calculate Days Sales Outstanding (DSO)
• Monitor credit limits and exposure

Collections & Dunning

• Automated reminder emails based on aging
• Escalation workflow for overdue invoices
• Dunning process configuration per customer
• Collection notes and history

Reporting & Analytics

• AR Aging Reports
• Collection Effectiveness metrics
• Customer payment patterns
• Cash flow forecasting

Credit Management

• Track customer payment history
• Calculate customer credit scores
• Recommend credit limits
• Flag high-risk accounts

Dunning Process

Automated Sequence:

1. Day 0: Invoice sent (no reminder)
2. Day 25: Friendly reminder (5 days before due)
3. Day 31: First overdue notice (1 day after due)
4. Day 45: Second notice (urgency increased)
5. Day 60: Final notice (escalation warning)
6. Day 75: Collections escalation
7. Day 90: Legal proceedings consideration

Configurable per Customer:

• VIP customers: Extended terms, gentle reminders
• High-risk customers: Aggressive follow-up
• Enterprise clients: Account manager notification

AR Aging Buckets

Bucket	Days Outstanding	Action
Current	0-30	Monitor
30 Days	31-60	First follow-up
60 Days	61-90	Escalated follow-up
90+ Days	91+	Collections/Write-off

Technical Details

Technology Stack:

• Runtime: Python 3.11
• Framework: Django
• Database: PostgreSQL
• Scheduler: Celery + Redis
• Analytics: Apache Superset

Key Metrics Tracked:

• DSO (Days Sales Outstanding)
• Collection Effectiveness Index
• Bad Debt Ratio
• Customer Payment Score

Performance:

• Daily AR processing: All customers
• Report generation: < 5 minutes
• Real-time balance updates

Integration Points

• Invoice Service: Receives invoice lifecycle events
• Payment Processing Service: Receives payment confirmations
• Customer Service: Provides payment history
• Email Service: Sends dunning notifications
• Reporting Service: Feeds executive dashboards