Automated accounts receivable reminders and escalation

Purpose

1. Automate the process of sending accounts receivable (AR) payment reminders and escalation notices to customers who have overdue invoices, reducing manual effort, minimizing late payments, ensuring consistent follow-up, improving cashflow, and allowing finance staff to focus on higher-value tasks.

2. Integrate with ERP/accounting and communication channels to deliver scheduled, conditional, and escalated AR messages based on payment status, leveraging multi-channel contact and reporting for compliance and escalation chains.

Trigger Conditions

1. Invoice due date reached without payment confirmation in ERP/accounting system.

2. Customer account flagged as past due by X days (customizable, e.g., 7, 14, 30).

3. Non-response to previous reminders within designated intervals.

4. Escalation thresholds met (e.g., overdue >30 days triggers management or legal notification).

Platform Variants

1. Microsoft Dynamics 365 (Power Automate)

• Function: Create flow to monitor overdue invoices and trigger “Send Email with Options” action to the customer.

2. SAP S/4HANA (SAP Business Workflow)

• Function: Configure automatic AR reminder emails through “Accounts Receivable Processing – Dunning” APIs.

3. Salesforce (Process Builder / Flow Builder)

• Feature: Set condition on “Opportunity/Invoice object” status and schedule “Send Email Alert” to AR contacts.

4. Oracle NetSuite (SuiteScript/SuiteFlow)

• Setting: Script approval logic for overdue invoices and use “nlapiSendEmail” or workflow email action.

5. QuickBooks Online (Intuit API + Workflow)

• Setting: Enable “Automated payment reminders” and connect Intuit API for status check, email, SMS.

6. Xero (Automated Invoice Reminders)

• Function: Set up auto-reminders in Xero dashboard; options to trigger reminder at set periods after due date.

7. Zoho Books (Workflow Rule)

• Setting: Create Workflow Rule for “Invoice Status Change” and perform “Send Email” action.

8. FreshBooks (Client Automatic Reminders)

• Setting: Activate “Automatic Payment Reminders” within each client profile.

9. Odoo (Automated Actions)

• Feature: Automated Actions configured for overdue invoices to trigger email or SMS via SMS Gateway integration.

10. SAP Business One (Dunning Wizard)

• Setting: Configure Dunning Wizard for scheduled AR notices and escalation to next steps.

11. Twilio (Programmable SMS)

• API: Use /Messages endpoint to send dynamic SMS reminders upon trigger event (e.g., overdue status).

12. SendGrid (Email API)

• API: Configure /mail/send to dispatch templated payment reminders from AR.

13. Slack (Incoming Webhooks/Bots)

• Feature: Notify internal AR teams on overdue cases for escalation via webhook/bot message.

14. Gmail (Google Apps Script/API)

• Function: Script AR reminders for overdue invoices using Google Sheets, sending via Gmail API.

15. Outlook 365 (Microsoft Graph API)

• Setting: Automate AR email sends using /sendMail endpoint and scheduled recurrence.

16. Mailgun (Email API)

• API: Set up automated transactional emails to overdue accounts using Mailgun’s “messages” API.

17. HubSpot (Workflow Automation)

• Feature: Create workflow triggered by invoice property and send AR emails, escalating after X days.

18. Monday.com (Automations)

• Setting: Board automation to notify stakeholders and send reminders for date-based overdue invoices.

19. Pabbly Connect (Workflow Automation)

• Setting: Pull data from accounting app, trigger SMS/reminder based on status change.

20. Intercom (Outbound Messages/Custom Bots)

• Feature: Send targeted, rule-based overdue invoice reminders to contacts using Outbound Messages flow.

Benefits

1. Reduces manual AR follow-up labor for finance teams.

2. Ensures timely and standardized reminders delivered consistently.

3. Improves payment rates and cashflow predictability.

4. Provides clear escalation paths up to management/legal when thresholds met.

5. Enables multi-channel communication (email, SMS, Slack) for higher effectiveness.

6. Supports compliance with internal AR policy and audit requirements.

7. Generates automated audit trails of all reminders and escalation actions.