Use this template to document your policies and SOPs for handling accounts receivable, applying cash to AR, and related tasks.
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Only authorized users will be granted access to the billing software.
The billing and collections functions must always be kept separate.
Likewise, the collections and credit memo functions must be kept separate.
To the extent possible, the duties of collecting payments, making deposits, and performing reconciliations should be held by separate employees in the accounting team.
Verify contract terms before issuing any customer invoice.
Invoices need to be issued within [one day] of shipment or delivery.
All receipts are pre-numbered and must be used in the correct sequence. Separate numeric series may be used for different revenue sources.
Receipts need to be prepared and immediately issued after transactions, such as when electronic fund transfers are confirmed or cash payments are received.
Collections must always reconcile with bank statements and the company's cash book or cash receipts journal.
All account codes are [four-digit numbers] and and all revenue objects begin with the number [3], with the last three digits representing specific revenue types.
All supporting documentation for payments received and other funds must be updated and readily accessible for audit.
The [Billing Manager] is responsible for ensuring that all customer complaints are answered (and if possible, resolved) within [number here] hours after the issue is first raised.
All Accounts Receivable journal entries require the review and approval of the [Financial Analyst].
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