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What is the collections process in accounts receivable? What is dunning? What is bad debt? What is a collection call and how should it be conducted? What is a statement of account and how does it aid collections? What is the difference between the direct write-off method and the allowance method? What is the allowance for doubtful accounts and how is it recorded? How do you record the recovery of a previously written-off account? What is the percentage-of-sales method for estimating bad debt? What is credit insurance and how does it protect receivables?
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Accounts Payable & Receivable › Collections & Bad Debts

What is a promise to pay and how is it tracked?

Beginner

Answer

A promise to pay (PTP) is a customer's commitment to pay a specific amount by a specific date, logged during a collection contact. Tracking PTPs lets collectors follow up exactly when a promise is due, measure how reliably customers keep promises, and prioritize broken-promise accounts for firmer action.
Real-world example A customer promises to pay $4,000 by Friday; the system flags it for follow-up and escalates automatically if it's broken.

Common follow-ups: Why track broken promises? | How do PTPs shape follow-up timing?

Collections & Bad Debts Aging Analysis Credit Control
All 23 Collections & Bad Debts questions