CCP CRM & AR Automation 2 — Questions and Answers
Question 1: In AR automation, what does 'straight-through processing' (STP) mean?
- Manual review of every invoice before posting
- Automated end-to-end transaction completion without human intervention (Correct answer)
- Sending invoices through multiple approval layers
- Processing only electronic invoices while mailing paper ones
Correct answer: Automated end-to-end transaction completion without human intervention
STP means transactions flow from initiation to completion automatically without manual touchpoints, maximizing efficiency in AR.
Question 2: A CRM system flags a customer as 'at-risk' based on payment behavior. Which metric most likely triggered this flag?
- High invoice volume
- Increasing Days Sales Outstanding (DSO) trend over 90 days (Correct answer)
- Frequent purchase of high-margin products
- Low credit limit utilization
Correct answer: Increasing Days Sales Outstanding (DSO) trend over 90 days
A consistently rising DSO indicates a customer is taking longer to pay, signaling potential credit risk in CRM analytics.
Question 3: Which AR automation feature reduces unapplied cash by matching remittances to open invoices automatically?
- Deduction management
- Cash application automation (Correct answer)
- Electronic invoice presentment
- Dunning letter generation
Correct answer: Cash application automation
Automated cash application uses algorithms and remittance data to match incoming payments to specific open invoices, reducing unapplied cash.
Question 4: What is the primary benefit of integrating CRM with an ERP's AR module?
- Eliminating the need for a credit policy
- Providing sales teams real-time visibility into customer credit holds and balances (Correct answer)
- Automating payroll processing
- Replacing the accounts payable function
Correct answer: Providing sales teams real-time visibility into customer credit holds and balances
CRM-ERP integration gives sales reps live credit and balance data, preventing orders for customers on hold and improving collections coordination.
Question 5: In automated dunning workflows, what determines which dunning letter a customer receives?
- The customer's industry sector
- The number of days an invoice is past due and the customer's risk segment (Correct answer)
- The original salesperson assigned to the account
- The customer's geographic location
Correct answer: The number of days an invoice is past due and the customer's risk segment
Dunning workflows use aging buckets and customer risk tiers to escalate communication appropriately, from gentle reminders to formal demand letters.
Question 6: Which term describes a short payment by a customer that requires research and resolution within AR?
- Overpayment
- Deduction or short pay (Correct answer)
- Credit memo
- Advance payment
Correct answer: Deduction or short pay
A deduction or short pay occurs when a customer pays less than the invoiced amount, requiring AR to investigate whether it is valid (e.g., damaged goods) or invalid.
Question 7: How does predictive analytics in CRM improve credit risk management?
- By eliminating the need for credit applications
- By scoring customers based on behavioral patterns to forecast payment likelihood (Correct answer)
- By automatically extending credit limits to all customers
- By replacing the role of the credit analyst entirely
Correct answer: By scoring customers based on behavioral patterns to forecast payment likelihood
Predictive analytics models use historical payment data, order patterns, and external signals to assign risk scores and forecast which customers may default.
CCP CRM & AR Automation 2
In AR automation, what does 'straight-through processing' (STP) mean?