Monitoring Accounts Receivable for Past Due Balances Sample Clauses

Monitoring Accounts Receivable for Past Due Balances. Open customer accounts must be monitored to determine past due balances that may require follow-up, and to provide all necessary information required to enforce collection. 1. Monitoring open customer accounts may be accomplished during the order entry process and through a regular review of customer Aged Trial Balance reports. In addition, during the cash application process, customer accounts may be reviewed and necessary action taken to clear aged deductions and questionable items. However, all adjustments resulting from such action must be approved in writing or in accordance with established procedures (i.e., credit memo approval process, etc.). 2. Aged accounts receivable balances and ATB reports are to be reviewed periodically (at least quarterly), to identify unusual open items and customers who are becoming slow-pay accounts, etc. 3. When departments other than the credit function are responsible for monitoring open customer balances, the system must ensure that all appropriate past due information is provided to the credit function for its use in effecting collection and managing credit risk. 4. Comments should be made on-line in any relevant system fields where text notes may be recorded (e.g., in SAP’s Credit Master Sheet, or in its Display Customer Line Items or DMC screens). Customer service, credit analysts or other responsible personnel are to document their findings in these notes and/or in other written form (e.g., on copies of ATB reports) to serve as a document of collections efforts and to be supplied to credit personnel, as needed.