This tool contains three policies that outline procedures for collecting on accounts receivable that have gone more than a specified number of days past their due dates without having been paid.

Most customers have defined payment terms to pay their invoices. According to the procedures of these policies, when an invoice has gone the specified number of days past its due date without being paid, it appears on the past-due list. Any item displayed on this list is subject to collection activity. Additional procedures include collecting on past due invoices, involving collection agencies and providing customer statements. Also provided is a standard response to unallowable deductions claimed by the customer.