Accounting Best Practices, Fifth Edition

18–4 Collection Policies for Best Practices (Chapter 7)

• The collections staff has primary responsibility for receivable collection, but may call on the assistance of the originating salesperson if normal collection techniques prove ineffective.

• Senior management shall collectively review and adjust the corporation’s product and services pricing policy at least annually.

• The collections staff can write off individual invoice balances of up to $___, not to exceed $___ in total per customer during a ___ month period, with no additional approval.

• The credit manager must approve all credit requests exceeding $____ prior to issuance of a final, firm sales quote.