Our Accounts Receivable Policy establishes procedures to ensure consistency in your company’s accounting treatment of receivables. It covers various aspects of receivable management, including when to reserve, write off or recover a receivable, and how to handle billings, cash receipts and credit memos. It also provides guidelines on maintaining internal controls and accurate records within the accounts receivable function.  

The document is designed to safeguard the company's assets, promote efficient operations, and ensure the proper valuation and reporting of trade accounts receivable, a major asset for many companies. Thus, it can be used by various departments within a company, including accounting, sales, quality control and production planning. It can also serve as a reference for developing necessary activities to ensure that the policy is understood and followed across different business units.

Sample procedures include:

• A daily lockbox detail report is printed, and the receipts will be posted in the system by the following business day.
• Monthly reconciliations should be performed to agree the accounts receivable sub-ledger balance to the general ledger.
• All invoice information will be automatically uploaded into the accounts receivable subledger.