The purpose of this sample policy is to ensure that accounts receivable are recorded accurately, completely, timely, consistently between business units, and in accordance with GAAP and SEC regulations. Trade accounts receivable are a major asset of a company and its subsidiaries. Accurate, complete, timely and consistent recording of its activity is critical to ensuring that this asset is properly valued and reported.

The accounts impacted by this policy include: trade accounts receivable, allowance for doubtful accounts, allowance for product claims, allowance for non-product claims, and allowance for cash discounts. The policy does not address non-trade accounts receivable.