How to Automate Payment Follow-ups in Monday.com: Automated Collections / AR tracking on monday.com

Advanced Collections / AR & Backoffice Automations - AllDayIT Finance Tips & Tricks for monday.com

Last updated: September 2025

Automated collections / AR tracking on monday.com

Manual payment follow-ups cost finance teams countless hours while allowing overdue payments to slip through the cracks. This comprehensive guide shows you how to build intelligent Monday.com automations that calculate due dates automatically, update payment statuses based on conditions, and send professional collection emails without any manual intervention.

The Hidden Cost of Manual Payment Processes

Most organizations struggle with manual payment tracking that creates these expensive problems:

• Inconsistent follow-ups: Finance teams miss payment deadlines due to manual tracking

• Calculation errors: Manual due date calculations lead to early or late collection attempts

• Time waste: Administrative staff spend hours updating statuses and sending emails

• Lost revenue: Overdue payments slip through gaps in manual processes

The solution lies in Monday.com's advanced automation capabilities combined with strategic workflow design.

Prerequisites: Building on Your Collections Foundation

This advanced automation system builds on the payment tracking foundation covered in our previous post. You'll need these elements in place:

• Payment tracking columns in your Monday.com Deals board

• Sub-item summaries for automatic payment totaling

• Automated balance calculations

• Payment status workflows (Paid, In Process, Unpaid, Overdue, Credit)

If you haven't implemented these basics, start with our Collections/AR Tracking System guide before proceeding.

Automated Due Date Calculation System

Setting Up Payment Terms Infrastructure

Effective due date automation requires proper data structure across your Monday.com boards:

Accounts Board Requirements:

• Payment Terms number column (stores days allowed for payment)

• Customer credit information

• Default payment preferences

Deals Board Implementation:

• Mirror column displaying payment terms from connected Account

• Local "Payment Terms" number column for automation compatibility

• Invoice Date column for calculation reference

• Due Date formula column for automatic calculation

Why Mirror AND Local Columns?

Monday.com's automation system has compatibility limitations with mirror columns. While mirror columns display data from connected boards, many automations and marketplace apps require local columns to trigger properly. This dual-column approach ensures your automations work reliably.

Due Date Formula Configuration

Your Due Date formula column should look something like this:

FORMAT_DATE(IF({Payment terms} > 0, ADD_DAYS({Invoice Date}, {Payment terms}), ADD_DAYS({Invoice Date}, 15)), "MM-DD-YYYY")

This automatically adds the payment terms (in days) to your invoice date, creating accurate due dates without manual calculation. if the payemnt terms are blank, this version of the formula adds a default value, which is 15 days.

Example: Invoice date June 11th + 60-day payment terms = August 10th due date

Automation Chain for Payment Terms

The complete automation sequence works as follows:

1. Deal Creation: When a new deal connects to an account, payment terms appear in the mirror column

2. Data Synchronization: Marketplace app copies mirror column data to local "Payment Terms" column

3. Automatic Calculation: Formula column calculates due date using invoice date and payment terms

4. Consistency Insurance: All related deals inherit consistent payment terms from their connected account

   
   

Intelligent Payment Status Automation

Building Status Logic Framework

Your payment status automation needs these supporting calculations:

Days Until Due Column: Formula calculating difference between today and due date

round(DAYS({Due Date}, TODAY()),0)

Balance Monitoring: Outstanding amount from sub-items payment tracking

Conditional Logic: Automation checks multiple conditions before triggering:

• Days until due (less than, equal to, or greater than zero)

• Outstanding balance (positive amount owed)

• Current payment status (prevents unnecessary automation runs)

Status Update Automation Rules

Configure automations to monitor these specific conditions:

Overdue Payments:

• Trigger: Days until due < 0 AND Balance > 0

• Action: Change status to "Overdue" + Send collection email

Due Today:

• Trigger: Days until due = 0 AND Balance > 0

• Action: Change status to "Due Today" + Send reminder email

Upcoming Due:

• Trigger: Days until due = 7 AND Balance > 0

• Action: Send courtesy reminder email

Payment Received:

• Trigger: Balance = 0

• Action: Change status to "Paid" + Send thank you email

Preventing Automation Loops

Include status condition checks to prevent unnecessary automation runs. This ensures automations only trigger when actual status changes are needed.

Professional Email Automation System

Dynamic Email Content

Your automated emails should include dynamic information pulled directly from Monday.com:

Customer Information:

• Company name from connected Account

• Contact name from deal owner

• Email address (using local email column for automation compatibility)

Payment Details:

• Deal number (Monday.com Item ID)

• Outstanding balance amount

• Original due date

• Days overdue (for collection emails)

Email Templates for Different Scenarios

Courtesy Reminder (7 days before due): "Hi {Contact Name}, this is a friendly reminder that payment for {Deal Number} in the amount of ${Outstanding Balance} is due on {Due Date}. Please let us know if you have any questions."

Due Today Notice: "Hi {Contact Name}, payment for {Deal Number} in the amount of ${Outstanding Balance} is due today. Please process payment or contact us if you need assistance."

Overdue Collection: "Hi {Contact Name}, payment for {Deal Number} in the amount of ${Outstanding Balance} was due {Days Overdue} days ago. Please remit payment immediately or contact us to discuss payment arrangements."

Advanced Email Automation

Beyond basic Gmail integration, consider these enhancements:

Monday.com CRM Sequences: Use Monday.com's CRM product for:

• Professional email templates with branding

• Advanced formatting and signatures

• Automated follow-up sequences

• Email tracking and engagement metrics

Conditional Email Logic: Different emails based on:

• Payment amount thresholds

• Customer payment history

• Days overdue ranges

• Account priority levels

Measuring Automation Success

Key Performance Indicators

Track these metrics to measure automation effectiveness:

Efficiency Metrics:

• Time saved on manual status updates

• Reduction in missed payment follow-ups

• Decreased days sales outstanding (DSO)

Accuracy Metrics:

• Elimination of manual calculation errors

• Consistent payment follow-up timing

• Improved customer communication

Business Impact:

• Faster payment collection

• Reduced administrative overhead

• Improved cash flow predictability

Next Steps: Advanced Collections Analytics

This automated payment system creates the foundation for powerful collections analytics. Our next blog post will cover:

• Customer payment behavior tracking

• Automated risk assessment scoring

• Performance analytics and reporting

• Credit decision support systems

Implementation Support

Ready to implement the ideas mentioned in this Automated collections / AR tracking on monday.com blog post in your monday.com workspace? These workflows require careful configuration of multiple connected automations, formula columns, and marketplace app integrations.

Get Professional Help: AllDayIT specializes in Monday.com financial workflow implementation. As an authorized Monday.com partner, we can help you build these complex automation systems quickly and correctly.

Schedule a free consultation to discuss your specific payment automation needs, or visit alldayit.com to learn more about our Monday.com implementation services.

Try Monday.com: Ready to start building? Get a free trial of Monday.com and begin implementing these powerful automation workflows.

Steve Escott is the founder of AllDayIT and an authorized Monday.com partner specializing in financial workflow automation. With over 25 years of experience in financial systems development, Steve helps organizations transform manual processes into intelligent automation workflows.