How to Track Performance of Collection Automation in NetSuite

📌 Automated collections in Oracle NetSuite can save time and improve cash flow, but to ensure they're delivering results, finance teams need to measure their performance. By using KPIs, custom fields, saved searches, and reporting tools, you can evaluate the success of your workflows and refine your strategies for better outcomes.

Here’s a step-by-step guide to track and optimize automated collection workflows in NetSuite.

Steps to Track Performance of Collections Automation

Use NetSuite’s native features to build a feedback loop into your collection process from reminders to escalations, so you can constantly improve how you collect cash.

Step 1: Define Key Performance Indicators (KPIs)

• Collection Rate
  The percentage of total outstanding invoices collected in a period.
    Use Reports > Financial > A/R Aging Summary and filter by date range.
  
  
• Days Sales Outstanding (DSO)
  The average number of days it takes to collect payments.
  Use Reports > Financial > DSO Analysis Report
  
  
• Collection Costs
  Track manual intervention time or any outsourced service costs. This is typically handled via custom fields or external tools.
  
  
• Number of Reminders Sent
  Count how many automated reminders were triggered by workflow per invoice.
  Requires a custom field and a saved search.
  
  
• Customer Satisfaction
  Not natively tracked, but you can use external tools or survey fields on customer records.

Step 2: Implement Custom Fields to Track Workflow Progress

Create custom fields to monitor automation effectiveness:

• Collection Status
  Customization > Lists, Records, & Fields > Transaction Body Fields > New
  Field values: Open, Reminder 1 Sent, Escalated, Collected
  
  
• Last Reminder Sent Date
  Track when the last reminder was triggered by the workflow.
  Data type: Date
  
  
• Collection Method
  Identify whether the invoice was followed up by email, SMS, etc.
  
  
• Escalation Level
  Use a field like “None,” “Manager Alert,” or “Legal Escalation” to show the collection stage.

Step 3: Utilize Saved Searches for Collection Insights

• Track Invoices by Status
  Reports > Saved Searches > All Saved Searches > New > Transaction
  Use filters on “Collection Status” and “Aging Days” to identify risk accounts.
  
  
• Filter by Collection Method
  Analyze which methods yield the highest success rate by filtering the “Collection Method” field.
  
  
• Monitor Escalated Invoices
  Create saved searches to isolate invoices escalated but still unpaid.
  
  
• Group by Customer Segment
  Use the "Customer Type" or a custom segmentation field to compare DSO across segments.

Step 4: Reporting and Analysis

• Review Trends
  Use Reports > Financial > A/R Register or a custom Saved Search to review historical collection patterns.
  
  
• Dashboard Tracking
  Dashboard > Personalize Dashboard > KPI Meter / Report Snapshot
  Add Collection Rate, DSO, or # of Escalated Invoices for at-a-glance visibility.
  
  
• Evaluate Workflow Changes
  When making changes to reminder frequency or triggers, compare collection rates before and after the update.
  
  
• A/B Test Methods
  Use custom fields and Saved Searches to compare the success of different reminder templates or frequencies.

Pro Tip: Growfin plugs into NetSuite and tracks the performance of every collection touchpoint across email, escalation, and workflow steps, while surfacing insights on which follow-ups result in faster cash recovery. With Growfin, finance teams go from reacting to payment delays to proactively optimizing every part of their AR funnel.

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