Accounts Receivable

Company Letterhead

{{company_name}}

{{company_address}}

Phone: {{phone}}

Email: {{email}}

Website: {{website}}

Policy Statement

It is the policy of {{company_name}} to ensure efficient and effective management of accounts receivable to maintain healthy cash flow and minimize bad debt. This policy applies to all credit sales and related collection activities.

Credit Terms

All credit sales are subject to pre-approved credit limits. Standard payment terms are {{payment_terms}} days from the invoice date, unless otherwise agreed in writing. Interest may be charged on overdue accounts at a rate of {{interest_rate}}% per annum.

Invoicing Procedures

Invoices will be generated and dispatched within {{invoice_dispatch_days}} days of goods delivery or service completion. Each invoice must include:

- Invoice Number: {{invoice_number}}

- Invoice Date: {{invoice_date}}

- Customer Name and Address: {{customer_name}}, {{customer_address}}

- Description of Goods/Services: {{item_description}}

- Quantity: {{quantity}}

- Unit Price: {{unit_price}}

- Total Amount Due: {{total_amount_due}}

- Payment Due Date: {{payment_due_date}}

Payment Collection Process

1. **Initial Payment Reminder:** A reminder will be sent {{reminder_days_before_due}} days before the payment due date.

2. **Overdue Notice 1:** If payment is not received by the due date, a first overdue notice will be sent on {{overdue_notice_1_date}}.

3. **Overdue Notice 2:** If payment is still outstanding after {{overdue_notice_2_days}} days from the due date, a second, more assertive notice will be sent.

4. **Final Demand:** If payment is not received within {{final_demand_days}} days of the second notice, a final demand letter will be issued, indicating potential legal action.

5. **Legal Action/Collections Agency:** Accounts remaining unpaid after the final demand will be handed over to a collections agency or legal counsel on {{collection_agency_referral_date}}.

Dispute Resolution

Any disputes regarding invoices must be formally submitted in writing within {{dispute_submission_days}} days of the invoice date. All disputes will be investigated within {{dispute_investigation_days}} days and a resolution communicated to the client.

Bad Debt Write-Off

Accounts deemed uncollectible after all collection efforts have been exhausted and approved by the Finance Manager will be written off as bad debt. This typically occurs after {{bad_debt_write_off_months}} months of non-payment.

Reporting

Aged accounts receivable reports will be generated bi-weekly for review by management. Key metrics include:

- Total Accounts Receivable: {{total_accounts_receivable}}

- Current Accounts: {{current_accounts}}

- 1-30 Days Overdue: {{days_1_30_overdue}}

- 31-60 Days Overdue: {{days_31_60_overdue}}

- 61-90 Days Overdue: {{days_61_90_overdue}}

- 90+ Days Overdue: {{days_90_plus_overdue}}

Signature Block

___________________________

{{approving_manager_name}}

{{approving_manager_title}}

Date: {{approval_date}}