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AR Billing Checklist

As outlined in the Corporate Accounts Receivable Policy, prior to financial dealings with potential Accounts Receivable Customers:

• Departments must evaluate any known risks based on past experience, prior financial dealings, or potential insolvency prior to providing goods or services.

• The appropriate supporting documentation such as work orders, agreements, contracts etc. have been prepared and executed. Specifically, documentation outlining names, work to be completed, payment terms, customer signature etc. has been completed.

• Standard terms are Net 30 days, billings with terms exceeding 30 days and/or specifically contracted interest rates may be established where appropiate. Contact the Manager of Accounting Services for assistance.

• Minimum amount to be invoiced should be $100.00 (including tax). Whenever possible, amounts due under $100 for products/services should be paid in advance or collected at point of service or delivery of product. Where all possible, alternative payment options should be utilized before billing through the accounts receivable system.

When issuing an Accounts Receivable invoice:

• Customers should be billed immediately upon product delivery and/or service completion.
  
  
• Accuracy of customer name and address. (The legal name rather than the name of the operating company).
  
  
• AR invoices must be billed to the customer who will have the legal responsibility to pay the full amount. Refrain from using “to the attention of" a specific individual.
  
  
• Accuracy of amount billed, amount of applicable taxes, payment terms, invoice description, interest bearing or non-interest bearing, remittance address, contact information for billing questions, other pertinent information and inclusion of attachments where applicable.
  
  
• Acceptable payment options identified.
  
  
• Standard terms are Net 30 days interest bearing, which should be supported by a binding contract, agreement or written acknowledgement in order to facilitate collection thereof, otherwise terms should be non-interest bearing.
  
  
• Maintain supporting documents for all corporate billings including appropriate authorizations. Supporting documents may include work orders, progress certificates, executed contracts etc.
  
  
• A long-term receivable (with a portion of the payment due greater than 1 year from invoice date) may only be issued with the assistance of the Manager of Accounting Services.
  
  
• Accounts receivable invoices should be mailed out within three (3) business days.