Debtor Management

Automatic Processes

From the formation of a claim to receipt of payment, debtor management is automatic with billwerk. Because of this automation, the time frame between service rendered and billing is minimal. And you can customise the payment escalation and dunning processes.

Payment escalation

Orient the stages of payment escalation by target group, for example: customer notifications, restriction of service, or account blocking.

Multi-step dunning

billwerk lists all outstanding claims per bill in payment reminders. If the outstanding claims have been paid, the payment escalation ends automatically.

Outstanding items management

Making the annual account easier: billwerk manages outstanding items and automatically adds them up so that they can be entered into stagnant accounts, thereby completing the books.


billwerk automatically detects credit card charge-backs. .

Reverse-charge process

Simplifying matters for merchants: billing net wages is possible for B2B customers in other European countries.

Automatic notifications


  • Has a customer’s payment method (or authorisation thereof) expired? Webhooks informs you, the trader, 30 days in advance so that you can respond proactively.


  • In this case you can inform the customer the next time they log in, or inform them in another way. You thus avoid payment escalation due to an invalid credit card, and the subscription continues uninterrupted.


  • billwerk’s payment escalation makes it easier for you to track overdue payments. For example, you can decide how many days it will take before your system is notified of the outstanding status by Webhooks.


  • You decide how payment escalation will operate, e.g. by informing the customer yourself, restricted/blocked services, etc.

Subscription Management & Recurring Billing with billwerk

billwerk is the Subscription Management & Recurring Billing software for your subscription business. 

More about Debtor Management

What is debtor management?

Debtor management refers to the process from the creation of a receivable to the receipt of payment and, at best, maps this process automatically. In accounting, accounts receivable management is the counterpart to accounts payable management. While the latter is responsible for paying one’s own liabilities on time, debtor management is responsible for ensuring that all outgoing invoices are cleared in the agreed settlement period.

Which tasks are part of debtor management?

  • Targeted debtor management starts with the creation and maintenance of a customer account when goods or services are delivered.
  • The supplying company makes advance payments and – in order to avoid bad debt losses – has clarified the customer’s creditworthiness in advance, if possible.
  • Appropriate credit terms should be established with the granting of credit in order to keep the costs of granting credit under control.
  • After delivery, the promptest possible preparation and posting of invoices and incoming payments, as well as monitoring of due dates.
  • In the event of late payment, as automated a trigger as possible for the dunning procedure.

How does debtor management work?

In debtor management, debtors are created, invoices are entered and sent, the corresponding receivables are monitored and, if necessary, collected by means of a dunning system or even a collection agency.

Why is debtor management important?

  • Effective debtor management fully maps the process with the customer (debtor), creates transparency in receivables and secures the liquidity of the company.
  • Debtor management is not part of the core business and is therefore often neglected by start-ups or idea-driven entrepreneurs.
  • Functioning debtor management, however, is an essential basic for the existence and expansion of any entrepreneurial idea.

What is debtor management software?

Debtor management software helps manage a company’s outstanding receivables. In doing so, it not only automates the entire process of debtor and receivables management, but also provides maximum visibility into customers’ open items. For subscription businesses, the integration of debtor management system means time and cost savings at all levels.

What are the advantages of automated debtor management?

You can concentrate on the core business, i.e. the product, the service or the preservation of the business competitive advantage. Accounting is usually not one of them, but startups, founders and SMEs in particular like to do it internally on the side – with a “the-customer-will-pay” mentality and sometimes dramatic consequences.

But large companies also benefit from debtor management automation, because it is precisely this area that is mainly responsible for their own liquidity. Subscription companies, in particular, are usually unable to manage this effort using conventional methods due to the large number of monthly invoices.

This results in two advantages that should not be underestimated: lower personnel and material costs, with a lower bad debt ratio.

What is the importance of debtor management for the Subscription Economy?

The Subscription Economy’s high demands on reliable accounting push even Payment Service Providers (PSP) such as Payone or GoCardless to their limits.

That’s why billwerk has developed special subscription management and recurring billing software that (with integrated partner solutions) effectively and cleanly maps debtor management, even for the demanding subscription economy.

Your 7 billwerk advantages at a glance:

  • Target group-specific payment escalation
  • Tracking of overdue payments
  • Multi-level dunning system
  • Complete open item management
  • Automated chargebacks and charge backs
  • Internationalized reverse charge procedure
  • Automatic webhook notification

What is the goal of debtor management?

Efficient debtor management ensures that all outgoing invoices are settled on time. This is accompanied by an improvement in cash flow, a reduction in bad debts, and an increase in liquidity.

What are the most common challenges in debtor management?

Debtor management is a time-consuming, usually labor-intensive job. Subscription companies are usually unable to accomplish this effort using conventional methods due to the large number of monthly invoices.

With the goal of significantly reducing costs and effort as well as achieving growth and scalability, billwerk also helps automate all recurring business processes in debtor management reliably and in compliance with EU regulatory requirements.

Why you should automate debtor management?

Automating important recurring business processes – such as debtor management – can significantly reduce costs and effort as well as achieve growth and scalability. With billwerk, this can be achieved reliably and in compliance with EU regulatory requirements – initially, continuously and on an ongoing basis.

What is the difference between debtor management and receivables management?

The term “debtor management” is often used synonymously with the word “receivables management”. While receivables management defines the rules and conditions for supplier credits, debtor management ensures that receivables, credit notes and incoming payments are properly recorded and actually realized. Debtor management and receivables management thus have the same goal: to avoid payment defaults and secure the company’s liquidity.