How To: Setup Debt Chasing
Table Of Contents
Introduction
Debt Chase Actions allow you to create a structured debt recovery process for overdue customer accounts.
Before setting up Debt Chase Actions, you should seek advice from your accountant, solicitor or other professional adviser to ensure your debt collection process complies with your business policies and any applicable legal requirements.
This example uses a simple four-stage debt recovery process:
- Overdue Account Email
- Final Reminder Email
- Letter Before Action
- Court Action
You can adapt the stages to suit your own business requirements.
Create Debt Chase Actions
- Open a System Data screen (show me how).
- Open the [ Accounts | Debt Chase Actions ] screen.
- Enter Edit Mode by pressing Alt + E or clicking Edit.
- Press F3 or click New to create a new debt stage.Note: You must create a separate record for each debt chase stage you wish to use.
- Enter the required information.
Example Debt Chase Stages
| Title | Purpose |
|---|---|
| Email 1 | Overdue Account reminder |
| Email 2 | Final Reminder |
| Email 3 | Letter Before Action |
| Court Action | Final escalation stage |
Min Period
Enter the minimum period in days before the debt can progress to this stage.
For example:
| Stage | Minimum Period |
|---|---|
| Email 1 | 7 Days |
| Email 2 | 14 Days |
| Email 3 | 21 Days |
| Court Action | 28 Days |
Important: Leave the Next Stage field blank while creating the stages initially.
- Press Ctrl + S or click Save.
Configure the Next Stage Progression
Once all debt stages have been created:
- Return to the [ List ] tab.
- Re-open the [ Accounts | Debt Chase Actions ] screen.Reopening the screen populates the Next Stage lookup list.
- Enter Edit Mode if required.
- In the Next Stage column, press F4 and select the stage that should follow if the debt remains unpaid.
Example Workflow
| Current Stage | Next Stage |
|---|---|
| Overdue Account Email | Final Reminder |
| Final Reminder | Letter Before Action |
| Letter Before Action | Court Action |
| Court Action | None |
- Press Ctrl + S or click Save.
Example Debt Recovery Process
The following example demonstrates a simple workflow:
Stage 1: Overdue Account Email
- Sent shortly after the account becomes overdue.
- Provides a polite reminder that payment is outstanding.
Stage 2: Final Reminder
- Sent if no payment is received within the defined period.
- Advises the customer that further action may be taken.
Stage 3: Letter Before Action
- Final written warning before legal action is considered.
- Typically issued following professional advice.
Stage 4: Court Action
- Final escalation stage.
- Used when all previous recovery attempts have failed.
Tips
- Keep debt stage titles clear and easy to understand.
- Agree the debt recovery process internally before configuring it in Khaos Control.
- Review minimum periods carefully to avoid escalating accounts too quickly.
- Test your debt chase process in a test system before using it in Live.
- Regularly review your debt stages to ensure they continue to meet your business requirements.
Additional Information
Debt Chase Actions define the sequence used by Khaos Control when progressing overdue accounts through your debt collection process.
The Next Stage field determines the order in which debt stages are applied, while the Min Period controls how long an account remains in a stage before progressing.
The setup can be customised to support simple reminder processes or more formal credit-control procedures.