CRM & AR Automation Flashcards
7 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 CRM & AR Automation flashcards as text
What does 'best possible DSO' (BPDSO) measure?
Answer: The DSO achievable if all current receivables were collected immediately
BPDSO represents the theoretical minimum DSO if only current (not past-due) receivables existed, serving as a benchmark for collection efficiency.
In a CRM system, what is a 'customer hierarchy' and why is it important for credit management?
Answer: A parent-child account structure that enables consolidated credit limit management across related entities
Customer hierarchies link subsidiaries to parent companies, allowing credit managers to set aggregate limits and assess total exposure across a corporate family.
Which AR metric specifically tracks invoices that are disputed and therefore cannot be collected until resolved?
Answer: Disputed AR percentage or dispute rate
Disputed AR percentage isolates invoices under formal dispute from the collectible AR pool, giving management visibility into unresolvable aging.
What is 'lockbox' processing in the context of AR automation?
Answer: A bank service that intercepts, processes, and deposits customer payments, then transmits remittance data to the company's AR system
Lockbox services accelerate cash application by having the bank handle physical checks and electronically forward payment and remittance data directly to AR.
When an AR automation system detects a duplicate invoice, what is the recommended automated response?
Answer: Flag it for review and suppress it from the dunning workflow pending resolution
Flagging and suppressing a potential duplicate prevents erroneous collection activity while allowing a human reviewer to confirm and void or merge the record.
How does AI-based credit scoring in a CRM differ from traditional bureau-based scoring for B2B customers?
Answer: AI scoring incorporates internal payment behavior, order patterns, and market signals unavailable in standard bureau reports
AI models enrich bureau data with a company's own transactional history and external signals (e.g., industry trends, news), producing more dynamic and accurate B2B risk scores.
What is the purpose of an 'aging bucket' report in AR management?
Answer: To stratify outstanding receivables by how long they have been overdue, enabling prioritized collection action
Aging buckets (e.g., 0-30, 31-60, 61-90, 90+ days) segment overdue invoices so collectors can prioritize the oldest, highest-risk balances first.