Collection Process
The collection process starts after the customer receives the invoice for processing and payment. The process takes place daily and is divided into two subprocesses: Pre-Collection and Collection.
Pre-Collection
The “Pre-Collection” subprocess starts when the collection team makes the first contact with the customer, before the invoice is due. This subprocess has the objective of identifying if a customer is a potential “non-payer” or to receive the promise of payment in the due date from said customer. Pre-collection is done via e-mail by finance, 5 days before the invoice is due and the communication is sent to the same contact who has received the document for payment.
In case the customer informs the collection team that they did not receive the invoice, a new copy will be sent to them. When we are informed that the invoice is incorrect, we open a request to the billing team to check the document that was sent to the customer.
These two possibilities indicate that the customer is at risk of being a “non-payer”. When the customer informs us that the invoice is correct and it will be paid in due time according to the contract, the promise of payment is registered.
Collection
When there is no answer from the customer during pre-collection, and the invoice is already overdue, we start the “Collection” subprocess. This subprocess is divided into two:
Customers with overdue amounts smaller than $5,000.00:
First contact is done by email (Responsible: Finance team), 5 days after the invoice is due;
Second contact is done by email (Responsible: Finance team), 15 days after the invoice is due;
Third contact is done by phone (Responsible: Finance team), 18 days after the invoice is due; The number that will be called will be the number that is registered in the CRM, if there is information about that, the finance team will confirm with the CSM responsible for the account;
Fourth contact is done by phone (Responsible: Finance team), 20 days after the invoice is due;
Fifth contact will happen 25 days after the invoice is due.
In the fifth contact, the CSM responsible for the account is added to the email chain.
Customers with overdue amounts higher than $5,000.00:
First contact is done by Finance team, 5 days after the invoice is due;
Second contact is done by phone (Responsible: Finance team), 7 days after the invoice is due; The number that will be called will be the number that is registered in the CRM, if there is information about that, the finance team will confirm with the CSM responsible for the account;
Third contact is done by phone (Responsible: Finance team), 9 days after the invoice is due;
Fourth contact is done by Finance team, 10 days after the invoice is due;
In the fourth contact, the CSM responsible for the account is added to the email chain.
Fifth contact will happen 15 days after the invoice is due.
The CSM is added to the collection process when there is no answer from the customer.
The CSM is expected to support the collection process by also getting in contact with the customer or getting in touch with a new contact.
The CSM has 15 days to take these actions and receive an answer from the customer.
In case the customer does not respond to any form of contact or does not inform the reason for non-payment after 60 days of the invoice being due, Finance Team will send an email to Marcela Galbiatti de Souza Lima(marcela.lima@rocket.chat) asking for her approval to cancel the active workspace. Marcela Galbiatti de Souza Lima has a deadline of 5 days to answer the email.
If Marcela Galbiatti de Souza Lima approves the cancellation, the customer will be informed that their workspace will be canceled after 30 days due to an overdue amount.
Finance Team will send an email to the Support team asking for the workspace cancellation copying Marcela Galviatti de Souza Lima and Paola de Pinho Palhais, stating the last active date for the workspace.
If the customer pays the overdue amount, the Finance Team will ask the Support Team by email to not cancel the active workspace, copying Marcela Galbiatti de Souza Lima and Paola de Pinho Palhais.
The customer will receive an email every 10 days informing them that their workspace will be canceled if they don't pay what is in overdue. At the end of the 30 days period, the customer will receive an email saying their workspace has been canceled.
After 90 days without payment, the customer will enter the “write-off” process. This process is finalized once the account is canceled or the overdue invoice is paid.
Finance team will send an email according to the rules below, asking for the approval. This email will contain the customer name, number of invoices overdue, amount in overdue, days in overdue.
The “write-off” is divided into two parts:
Customers with overdue amounts smaller than $5,000.00:
Only Head of Finance/CFO approval is required.
Customers with overdue amounts higher than $5,000.00:
COO will be the first approver;
Head of Finance/CFO will be the second approver;
CEO will be the final approver.
After the “write-off” is approved, the Finance Team has to send Paola de Pinho Palhais the total amount paid until that day by the customer so she can cancel the deal in the CRM and move to Closed Lost.
The collection process ends after payment is received or when the workspace is canceled (churn).
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