Create / Maintain Customer Master Records

CREATE / MAINTAIN CUSTOMER MASTER RECORDS

MIT customers include faculty, employees, student organizations, alumni, sponsors, and miscellaneous companies who do business with MIT.

A Customer Master record, identified by a unique customer number, is maintained for each customer. The master records contain data such as name, address, and payment terms.

As services are performed, customer master records are created/maintained by the MIT "dunning area" departments providing the services (for example, Medical and Libraries). Central A/R personnel create customer masters for customers receiving miscellaneous services.

Create/display/change customer master record

As services are performed, MIT "dunning area" departments and central A/R obtain information from their customers, whether new or established.

Does a customer master already exist?
Use FD03 - Display Customer Master Record to find out if a master record already exists for the customer. Compare the customer information provided (for example, name, address, id#, relationship to MIT) with information in the SAP database.
Does an existing customer record need to be updated?
If an existing record is found, verify that customer information is complete and accurate. If the customer information has changed, use FD02 - Change Customer Master Record to update the record.
Does a new customer master record need to be created?
If there is no exact match to an existing record, use FD01 - Create Customer Master Record to create one. Note:Take care to avoid creating duplicate customer masters, as this can lead to billing errors.

Maintain accounting (collection) notes

A/R personnel will maintain pertinent notes and comments related to collection of receivables. These "accounting" or collection notes are stored as part of the customer master record. The notes may include reasons for late payments and promises to pay, as well as comments relative to employee payroll deductions and movement to outside collection agencies.

Prior to making collection phone calls, A/R personnel will enter the accounting notes area of the customer master record (see FD02 - Maintain accounting notes) and review past comments. During/after the conversation with the customer, the customer accounting notes will be updated.

Accounting notes should also be maintained relative to mailings of final notices to, and receipt of, correspondence from customers

For more information about collection procedures, see Business process Find/Collect Overdue Balances.

Block/unblock customer master record

Based on review of aging reports (see ZAR2 - Run aging reports by dunning area) and standard collection procedures (see Business process Find/Collect Overdue Balances), A/R personnel will notify client departments of customers being placed for collection. Departments should deny further services to these customers.

A/R will then block these customers from further services (see FD05 - Block/unblock customer services/ charges/ payments). Should a department provide services and try to enter an invoice (or payment) for the customer, blocking will cause the invoice (or payment) to be rejected. The department needs to contact A/R to unblock the customer record.

Subsequently, should a customer bring their account current, A/R can unblock the customer to process future invoices and payments.

Mark customer master record for deletion

Every two years central A/R personnel will execute and analyze a report (see SART - Run customer activity report), which identifies customer accounts with no activity for the preceding two years.

Customers whose accounts show no activity for the preceding two years will be marked for deletion (see FD06 - Mark customer master records for deletion) and departments will be notified that the customer record is to be deleted.