Classification

Written by Uday Kumar Updated

Overview

The Classification step defines how your customers are grouped for AR Collections. Each classification (for example, Key Account, Regular Account) can have its own dunning strategy in the Notification step.

In this step, you:

  • View and manage classification tabs (for example, Key Account, Regular Account).

  • Add, edit, and delete classifications.

  • Choose which classification is the default for new customers.

All classifications defined here will be available when you configure classification (dunning schedules) for AR Collections.

Figure 1: Classification Step in SmartCustomer Configuration (AR Collections)

Classification Tabs

At the top of the screen, you see a row of classification tabs, for example:

  • Key Account

  • Regular Account (Default)

  • A “+” tab to add a new classification

Each tab represents a single customer classification that AR Collections can use.

When you click a tab:

  • That classification becomes active.

  • Any options for that classification (including the default setting) are shown in the main panel.

Add, Edit, and Delete a Classification

On each classification tab:

  • Add icon (plus sign) – Opens a dialog or inline form so you can create a new classification. Enter a name (e.g., “Escalation”, “High Risk”, “Strategic”) and save to add the classification tab.
  • Edit icon (pencil) – Opens the classification so you can update its name or details (where supported).
  • Delete icon (trash can) – Deletes the classification and its notification rules from this SmartFlow (you will be asked to confirm).

How Classifications Are Used in AR Collections

After you complete the Classification step:

  • Each classification you have defined (for example, Key Account, Regular Account, Escalation) is available in later configuration steps.

  • In the Notification step, you will see a tab for each classification, and you can define:

    • Separate dunning schedules for each classification.

    • Different templates, tone, and escalation behavior per classification.

In day‑to‑day operations:

  • Customers are mapped to one of these classifications (via your ERP, SmartCustomer, or both).

  • AR Collections uses the Notification rules for that customer’s classification when deciding:

    • When to send reminders.

    • What type of reminder to send (for example, softer for Key Accounts, more frequent for Escalation).

Select a Customer Classification

To configure notifications:

  1. Click a classification tab (for example, Key Account or Regular Account (Default)).

  2. Adjust the dunning schedule for that classification.

  3. Repeat for each classification as needed.

Note:
The layout and options are the same for all classifications (Key Account, Regular Account, and any others you define). What differs is the values you choose for each.

The dunning notifications can be sent

In the main panel, you define when dunning notifications are sent. For the selected classification, you can use any combination of:

  1. For each unpaid invoice, based on Invoice Due Date

  2. For each unpaid invoice, based on Invoice Date

  3. Consolidated, on Specific Days Every Month

Each option is enabled/disabled using the checkbox to its left.

The configuration described below applies equally to Key Account, Regular Account, and any other classification tabs.

1. For each unpaid invoice, based on the Invoice Due Date

Select For each unpaid invoice, based on the Invoice Due Date, to schedule reminders relative to the due date of each invoice.

When this is checked, you configure three items.

Days Before the Invoice Due Date

  • A field labeled Days Before the Invoice Due Date accepts one or more comma‑separated values (for example, 0, 3, 10).

  • These are the days before the invoice due date when reminders are sent.

Day Picker Behavior

  • Clicking this field opens a day picker popup.

  • You can:

    • Select one or more day values in the popup.

    • Click OK to apply them.

  • The selected values appear in the field, separated by commas (for example, 0, 3, 10).

Days After the Invoice Due Date

  • A field for Days After the Invoice Due Date accepts comma‑separated values (for example, 7, 14, 21, 30).

  • These are the days after the invoice due date when reminders are sent for invoices that remain unpaid.

Day picker behavior is the same as above.

Continue to send dunning every X days after the final date noted above indefinitely

  • Checkbox plus a dropdown for the interval.

  • When checked:

    • After the last “Days After” value, AR Collections keeps sending reminders every X days while the invoice is unpaid.

2. For each unpaid invoice, based on Invoice Date

Select For each unpaid invoice, based on Invoice Date to schedule reminders based on how long the invoice has existed, regardless of due date.

When this is checked:

  • A field for Days After the Invoice Date appears.

  • Enter comma‑separated values (for example, 0, 7, 14, 21, 30).

The day picker popup works here as well:

  • Click the field, choose days in the popup, click OK.

Use this when your policy is based on invoice age (for example, 30/60/90‑day follow up) rather than exact due date.

3. Consolidated, on Specific Days Every Month

Select Consolidated, on Specific Days Every Month to send consolidated reminders or statements on specific calendar days.

When this is checked, three options appear:

Last Day of the Month

  • Checkbox: Last Day of the Month.

  • Sends a consolidated notification on the last calendar day of each month.

Days Before the Month End

  • Checkbox: Days Before the Month End plus a numeric dropdown (for example, 1).

  • Sends a consolidated notification a certain number of days before the last day of each month.

Day N of the Month (at most 10)

  • Checkbox: Day N of the Month (at most 10) plus a numeric Day field.

  • Enter a value from 1 to 10.

You can combine these options (for example, Day 1 and Last Day of the Month) to deliver regular statements.

Additional Options (per Classification)

At the bottom of the Notification panel for the currently selected classification (for example, Key Account or Regular Account (Default)), you will see two checkboxes:

Set as the default customer classification

  • When checked:

    • The current classification becomes the default for new customers when no other classification is specified.

    • Its tab label is updated to show (Default), for example: Regular Account (Default).

  • Only one classification at a time should be the default; setting this on a new classification effectively moves the default flag.

Set notification emails as High Importance

  • When checked:

    • All dunning emails for the current classification are marked as High Importance in supported email clients.

  • Often used for higher‑risk or escalation tiers.

These settings are applied separately for each classification tab, including Regular Account.

Once you finish configuring notifications for both Key Account, Regular Account, and any other classifications, click Continue to move to the Save and Run step and activate your AR Collections SmartFlow.