Receive-from-receivable (RFR) and receivable performance management are two separate entities. The former is a sales strategy which deals with products and services purchased in the form of cash payments. The latter is a system for managing inventory, contract receivables, and contract payables using sophisticated tools, including computerized purchase order software. Most sales and customer service executives will work with both types of systems at some point. However, there are a few key differences between RFR and contract management. Let,s take a closer look at these two critical elements of a sales process.
When purchasing a system to manage your contract and sales activities, make sure that it incorporates some type of RFR. This is a tool that captures and transmits details of all purchases and sales to your accounting department for record-keeping purposes. The advantage of this type of software is that the data is easy to analyze. The drawback, however, is that the analysis of this data will take time and effort. If you have the capital to invest in RFR or receivable performance management software, then you can get a great deal on this type of software.
However, if you do not have this type of capital available, then contract management is often a better option. In this case, you will need to determine how much the capital you will need for the initial implementation of the system. Of course, some companies can do this without investing any capital at all. Other companies will require additional funding as part of their initial business plan. In the case of contract management, the key point is that you will need to implement the system using the existing methods for tracking inventories. You will need to establish inventories for every product sold and obtain pricing information for each product.
Then, you will be required to maintain the inventories for each product and make accurate entries for each product. The key advantage of contract management is that it allows for regular inventory updates to ensure that you have the correct data regarding each product and each invoice. The disadvantage of RFR is that you will have to rely on an accounting program to help you manage the information. In some cases, your salespeople may have little or no experience in the process of collecting and maintaining the data necessary for RFR software. In these instances, it would be best to leave RFR to the accounting department.
However, the advantages of RFR far outweigh the disadvantages of traditional contract management. As previously stated, RFR collects data and analyzes it for analysis. It also helps to provide you with accurate and timely reporting of the data so that you can report the data accurately to your business and accounting departments. To be certain that your decision is the best, you should always work with a reputable software vendor. A company with a strong reputation in the software industry will know how to design your particular software to suit your needs.