Infor LN Accounts Receivable Setup and Credit Management
The Accounts Receivable module in Infor LN manages the order-to-cash cycle from sales invoice generation through cash receipt allocation. Configured through sessions like tfacr0110s (Sales Invoices) and tfacr0520m (Receipts), the AR module directly impacts cash flow velocity and DSO metrics. Proper credit management, dunning automation, and payment matching configuration ensure maximum collection efficiency.
AR Invoice Management and Revenue Recognition
Infor LN generates AR invoices from sales orders, service orders, and project milestones. Session tfacr0110s manages invoice creation, while the composing and printing framework (tfacr0401m) controls invoice document formatting. Revenue recognition rules can be configured to comply with ASC 606 and IFRS 15 standards, supporting deferred revenue schedules and milestone-based recognition.
- Configure invoice composing and printing in tfacr0401m with templates supporting multi-language and multi-currency output
- Set up revenue recognition schedules for subscription, milestone, and percentage-of-completion billing models
- Define automatic invoice numbering sequences per company and financial group in tfacr0100s
- Configure credit note and debit note processing workflows for returns, disputes, and price adjustments
- Enable electronic invoicing (e-invoicing) output formats for compliance with regional tax authority requirements
Credit Management and Risk Control
Infor LN credit management operates through session tfacr0130m, controlling credit limits, risk scoring, and order hold policies per business partner. The credit check engine evaluates open orders, outstanding invoices, and payment history to determine whether new sales orders should proceed or be held for review.
- Define credit limit policies in tfacr0130m with separate limits per currency and per business partner group
- Configure credit check triggers at order entry, order release, and shipment confirmation stages
- Set up automatic credit hold and release workflows based on payment receipt and aging thresholds
- Establish credit scoring models using payment history, order frequency, and external credit bureau data
Dunning Procedures and Cash Collection
Automated dunning in Infor LN uses session tfacr0145m to define dunning levels, escalation timelines, and communication templates. Each dunning level specifies the days overdue threshold, letter template, and escalation action. Proper dunning configuration reduces DSO by 10-15 days on average and ensures consistent collection practices across all customer segments.
- Configure multi-level dunning procedures in tfacr0145m with escalating severity from reminder to legal action
- Set up automatic payment matching in tfacr0520m using reference number, amount, and customer matching algorithms
- Define write-off policies and approval thresholds for uncollectable balances with proper GL impact tracking
Optimize your AR collection cycle in Infor LN—request a credit management review from Netray.
Related Resources
Infor LN Accounts Payable Automation Guide
Automate Infor LN accounts payable processing with invoice matching, approval workflows, payment scheduling, and vendor management configuration best practices.
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