- Home
- Bankruptcy and Bankruptcy Code
- Business Entities
- Departmental Operations
- Allowances
- Bad Debt Write offs; Bad Debt Losses
- Calculating Bad Debt Reserves
- Bad-Debt Write Offs; Uncollectible Accounts Receivable
- Computer Skills and the Credit and Collection Function
- Consignments; Consignment Sales
- Credit and Sales; Using Salespeople as Collectors; Team Based Account Management
- Handling Disputes Between Sales and Credit
- Credit Department and Organizational Structure
- Key Activities of the Credit Department; Role of the Credit and Collections Department
- Credit Department Goals and Objectives
- Credit Department Organization; Centralized vs. Decentralized Credit Operations
- Credit Policy Overview
- Divestitures
- Downsizing the Credit Department; Planning and Pitfalls; Outsourcing
- Economic Downturns; Recessions; Layoffs
- Electronic Data Interchange (EDI)
- Finding, Attracting, and Retaining the Best Employees
- Escalating A/R Problems to Management
- The Credit File; Keeping the Credit File Current
- Improving Inter-Departmental Relationships
- Lockbox; Bank Lockboxes; Improving Cash Flow
- Motivation and Performance
- UCC 1 Perfection by Filing
- Required Areas of Knowledge for a Credit Professional
- Impact of Bad Debt Write Offs; Bad Debt Losses
- Shipping Procedures
- Improving the Effectiveness and Efficiency of the Credit Function
- Building Bridges Between Sales and Credit
- Dormant Accounts
- Training Collectors
- Customer Retention
- Working Proactively in Credit and Collections
- Goal Setting for the Credit Department
- Myths about Credit Management
- Credit Practices
- Collection Practices
- Financial Analysis
- Financing Methods
- International Credit
- Laws and Regulations
- Payment Methods
- Performance Measures
- Security Instruments
- Career Management, and Job Change
- Credit Website Tools
- Upcoming Educational Events
- Credit and Collections Tools and Tips
- Tips on Creating Better Emails
- Generating Effective Credit Correspondence
- Exporting
- Accounting
Handling Disputes Between Sales and Credit
The credit department and the sales department will disagree from time to time about how credit limits and terms, and about how a particular problem should be handled. This can lead to tension between the two departments.
Here are some ways to work towards a better relationship between sales and credit:
-
Agree to disagree, but refuse to take disagreements personally.
-
Disagree in private. Public arguments tend to entrench each party in their current position.
-
Take the initiative in trying to mend fences and build bridges between sales and credit.
-
Communicate openly. Don't hold things in, and don't hold back facts.
-
Listen actively. Listen with an open mind. Listen for new facts and insights.
-
When you disagree with the sales department's position, ask the salesperson to suggest a creative solution, or try to work cooperatively at finding solutions to a problem.
-
If you think you "might" be wrong, get a second opinion before making a final decision.
-
Don't wait for perfect information to make a credit decision, or demand perfect supporting documentation in order to authorize the issuance of a credit memo.
-
Make sure subordinates understand that an "Us Against Them" sales-credit relationship is unacceptable to you as the department manager.
© 2011. Michael C. Dennis. All Rights Reserved. Michael is the author of "Credit and Collection Handbook."