CCP CRM & AR Automation 5

Question 1

In AR automation, what is 'exception management' and why is it critical?

Accepted Answer

Identifying and routing transactions that fail automated matching rules to human review queues

Answer

Exception management captures the transactions that automation cannot resolve and routes them efficiently to human specialists, ensuring no cash falls through the cracks.

Question 2

Which feature of a CRM system allows a credit analyst to see all customer interactions, orders, and payment history in one view?

Accepted Answer

360-degree customer view or unified customer profile

Answer

A 360-degree customer view aggregates CRM interactions, ERP transactions, and payment history into one screen, enabling informed credit decisions and collection conversations.

Question 3

What distinguishes a 'soft' dunning message from a 'hard' dunning message?

Accepted Answer

Soft dunning is a gentle reminder for slightly overdue invoices; hard dunning is a firm demand with escalation warnings for severely overdue accounts

Answer

Dunning escalation logic graduates from polite reminders (soft) to formal collection demands with legal or service-suspension warnings (hard) based on aging and risk.

Question 4

What is 'credit insurance' and how does it interact with a company's AR automation strategy?

Accepted Answer

A policy that indemnifies a company against customer insolvency or protracted default, often integrated with credit limit approvals in CRM

Answer

Credit insurance protects against bad debt loss; when integrated with CRM, insurer-approved limits can auto-populate customer credit limits, streamlining the approval process.

Question 5

Which process in AR automation uses optical character recognition (OCR) to reduce manual data entry?

Accepted Answer

Invoice capture and data extraction from paper or PDF invoices

Answer

OCR technology reads invoice fields (amount, date, PO number) from scanned or PDF documents and populates AR systems automatically, reducing keying errors and labor.

(CCP) Certified Credit Professional Practice Test

(CCP) Certified Credit Professional Practice Test

CCP CRM & AR Automation 5