Gain insights into our Allowance for Doubtful Accounts Policy and its implications for managing accounts receivable and revenue cycle processes.

According to this policy, all variations from this policy must be approved by the vice president responsible for control, the vice president responsible for the treasury function or the chief financial officer. Companies often reserve for uncollectable customer cash payments when invoices are past their due dates. The collection of accounts receivable is an important process in the overall revenue cycle that directly impacts cash flow. The formal collections process occurs when a customer’s account becomes past due, based on the invoice date.