Collections
Everything past-due that dunning alone can't finish
Collections is the function that contains dunning. The automated sequence handles the majority of open invoices; collections handles what the sequence can't: replies that need a real answer, disputes, promised payment dates, and the accounts where the right move is escalating to a person rather than sending another reminder. In LedgerUp, Ari runs both sides and keeps finance in the approval loop through Slack.
What collections is
Collections is the broader accounts receivable function built around dunning: the reminder-and-escalation sequence plus dispute resolution, promise-to-pay tracking, escalation to account owners and executives, and, at the far end of the category, payment plans and write-off or agency referral. The practical difference from dunning is judgment. Dunning follows a schedule; collections decides which accounts need a different schedule, a different contact, or a human conversation, and it makes that decision from aging, balance size, payment history, and risk rather than treating every invoice the same.
How the collections workflow runs
What happens when an invoice ages beyond routine reminders. Every threshold, recipient, and rule is configurable.
Every open invoice starts in the dunning sequence
Reminders, escalating follow-ups, and failed-payment retries run automatically on the cadence you set. Most invoices resolve here and never become collections work at all.
Accounts are prioritized by aging, balance, and risk
Ari monitors due dates, aging, customer behavior, and prior communication history, so follow-up effort concentrates on the highest-risk and highest-value balances instead of whichever thread was opened last.
Replies are read, classified, and answered
A payment confirmation or promise to pay pauses the sequence and records the committed date. A question gets answered and the conversation keeps moving toward payment. The sequence never continues on top of a live conversation.
Escalation loops in the right people
When follow-ups go unanswered past your threshold, Ari escalates on the rules you configure: the customer's billing owner, your account manager, a finance lead, or a senior stakeholder on their side. The right person, at the right time.
Disputes and exceptions route to an owner
A disputed invoice, a short pay, or a missing remittance is flagged with its reason and routed to the right person with the invoice, contract, and aging attached, so it stops accruing reminder steps that would only make things worse.
Payment stops everything automatically
When payment lands, Ari knows and stops the reminders. Cash application matches the payment to the invoice, and the outcome feeds back into how the next sequence is tuned.
What you configure
The controls that separate a collections program from a reminder blaster.
Escalation rules
Who gets looped in, when, and at what threshold: account managers, finance leads, or senior stakeholders, added to the thread rather than replacing the last contact.
Segmentation
Different treatment by customer tier, balance size, payment terms, and risk. An enterprise account on Net 60 gets a different path than a self-serve account on Net 15.
Tone
Ari's tone adapts to account history, payment patterns, and how overdue the invoice is: friendly by default, firm when the aging justifies it.
Approval controls
Approval steps for sensitive outreach, and clear controls over what Ari can draft, send, sync, or escalate without a human signing off first.
Promise-to-pay tracking
A committed date pauses the sequence until that date and resumes it automatically if the payment doesn't arrive.
Pause and exclusion rules
Open disputes, active renewal negotiations, and holds placed by the account owner all stop automation until a person clears them.
Collections metrics
Real-time aging by segment, collection risk, collection effectiveness, disputed invoice balance, unapplied cash, and expected cash timing, so prioritization runs on numbers rather than memory.
docs.ledgerup.ai
Open the collections configuration guide
Escalation rule setup, segmentation, approval controls, and reply-handling configuration are documented step by step on the docs site.
Go to docs.ledgerup.aiCollections FAQ
What is collections automation?
Collections automation is software that runs the past-due side of accounts receivable: reminder sequences, escalation to the right contacts, reading and classifying customer replies, capturing disputes, tracking promised payment dates, and prioritizing accounts by aging and risk. In LedgerUp, Ari runs this workflow and hands off to a person the moment an account needs judgment rather than another reminder.
What is the difference between collections and dunning?
Dunning is the automated sequence that runs on every open invoice: reminders, escalations, and retries on a schedule. Collections is the broader function that contains it, adding dispute resolution, promise-to-pay tracking, escalation to account owners and executives, and, at the far end of the category, payment plans and write-off or agency referral. Dunning handles the majority of invoices; collections handles what dunning can't.
What happens when a customer replies to a collections email?
Ari reads and classifies the reply. A payment confirmation or a promise to pay pauses the sequence and records the committed date. A dispute is flagged with its reason and routed for resolution. A question that needs a real answer goes to the account owner in Slack with the invoice, contract, and aging attached, or Ari answers it directly and keeps the conversation moving toward payment.
How does escalation work?
On rules you configure. When follow-ups go unanswered past your threshold, Ari widens the thread: the customer's billing owner, your account manager, a finance lead, or a senior stakeholder on the customer's side, with the aging and history summarized so nobody has to re-read the thread. You control who gets looped in, when, and at what threshold.
Does automated collections damage customer relationships?
It does when automation keeps firing at a customer who already disputed, already paid, or already committed to a date. LedgerUp pauses on any of those signals and hands off to a person with full context. Tone also adapts to the account: history, payment patterns, and how overdue the balance is, so routine follow-up stays friendly and only genuine delinquency gets firm.
What results do teams see from collections automation?
LedgerUp customers report an average 35% reduction in DSO and 75% faster collections, with 180+ hours of AR work saved per month on larger teams. The gain comes from consistency and prioritization: every invoice gets followed up on schedule, escalation reaches the right contact, and effort concentrates on the balances that actually move cash.