CCP CRM & AR Automation 2

Question 1

In AR automation, what does 'straight-through processing' (STP) mean?

Accepted Answer

Automated end-to-end transaction completion without human intervention

Answer

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?

Accepted Answer

Increasing Days Sales Outstanding (DSO) trend over 90 days

Answer

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?

Accepted Answer

Cash application automation

Answer

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?

Accepted Answer

Providing sales teams real-time visibility into customer credit holds and balances

Answer

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?

Accepted Answer

The number of days an invoice is past due and the customer's risk segment

Answer

Dunning workflows use aging buckets and customer risk tiers to escalate communication appropriately, from gentle reminders to formal demand letters.

(CCP) Certified Credit Professional Practice Test