KnowledgeLeader provides best practice articles, tools, guides and other resources on accounts receivable. This page contains an alphabetized list of all of the resources and tools on accounts receivable that are available for download on KnowledgeLeader. The tools are provided in downloadable versions, so they can be customized for use in your organization.
Accounting: Asset-Backed Securitization and Factoring of Receivables Policy
This sample policy outlines a set of policies and procedures for asset-backed securitization and factoring of receivables.
Accounts Receivable Cash Collections Policy
This policy outlines procedures for collecting on customer accounts that are past due.
Accounts Receivable Policy: Cash Receipts
This policy outlines a set of procedures for processing and recording cash receipts.
Accounts Receivable Debit Notes Policy
This policy outlines a set of procedures for receiving debit notes from customers in situations where goods are returned or rejected.
Accounts Receivable Write-Offs Policy
This policy provides procedures to be followed when dealing with issues resulting from the bankruptcy of a customer or writing-off bad debts.
Accounts Receivable Credit Holds Policy
This policy outlines a set of procedures for correctly dealing with withholding or delaying an order as a result of customer non-payment.
Accounts Receivable Employee Receivable Policy
This sample policy outlines the requirements for approving, processing and collecting employee receivables.
Accounts Receivable Negotiated Debt Forgiveness Policy
This sample policy outlines procedures to protect a company’s receivables and ensure the fair market value of such assets is properly recorded.
Accounts Receivable & Credit Internal Audit Work Program: Segregation of Duties
Accounts receivable and credit processing can introduce significant risks to an organization. Internal audit teams can utilize this sample work program to focus on segregation of duties and general control concerns within an organization's accounts receivable and credit processes.
Accounts Receivable Bad Debt Policy
The purpose of this policy is to establish consistent methods for determining the bad debt reserve amount, referring appropriate accounts receivable to an outside collection agency, and charging off amounts to the bad debt reserve.
Accounts Receivable Collections Confirmation Memo
This memo can be sent to guarantors in order to confirm collection accounts.
Accounts Receivable Customer Credit Policy
This policy focuses on establishing customer credit limits, minimizing write-offs of bad debt customer accounts, maximizing sales and managing cash flow.
Accounts Receivable Internal Control Questionnaire
The objective of this questionnaire is to have the owners of core functions and processes in an organization perform a control self-assessment of their operations.
Accounts Receivable Policies and Procedures - Returns
This sample policy provides guidance on the procedures to be followed when merchandise (damaged or otherwise) is returned by mail or shipment.
Accounts Receivable Policy
This policy establishes guidelines for receivables management, focusing on receivable reserves, write-offs and recovery.
Accounts Receivable Policy: Sample 2
This policy outlines procedures for billing and cash receipt transactions related to product sales and services. Accounting is responsible for maintaining accurate records within the accounts receivable function and ensuring that proper internal controls are maintained.
Accounts Receivable Process Diagnostic Questionnaire
This high-level diagnostic analyzes accounts receivable process activities to highlight opportunities for improvement.
Accounts Receivable Process Flow
This process flow focuses on the accounts receivable process including steps for credit review and credit limit granting, cash receipts, cash application, bad debt write off and establishing reserves.
Accounts Receivable Reserves Policy
This policy outlines steps for developing an accounts receivable reserve account for bad debts, returns and allowances, and customer allowances.
Accounts Receivable, Credit and Collections Audit Report
This audit report reviews the accounts receivable, credit and collections processes. In this example report, the company recently completed a system conversion. The objective of this review was to obtain an understanding of the processes, evaluate the adequacy and effectiveness of the associated internal controls and to identify opportunities for process improvements.
Accounts Receivable, Credit and Collections Audit Report: Sample 2
This audit report reviews the account receivable, credit and collections processes for the branch and corporate offices of an organization.
Accounts Receivable, Credit and Collections Questionnaire
This questionnaire can be used to compare your current business practices with leading practices for the accounts receivable, credit and collections process.
Accounts Receivable/Collections Work Program
This work program provides sample audit steps for evaluating a company’s compliance with policies and procedures related to the accounts receivable and collections process.
Allowance for Doubtful Accounts Policy
This policy specifies guidelines that ensure uniform accounting for allowances for doubtful accounts across an organization.
Allowance for Doubtful Accounts Policy: Sample 2
This policy provides guidelines for reviewing, monitoring and communicating with delinquent or past due customers and their payments to the company.
AR Aging and Collections Process Flow
Accounts receivable (AR) aging report lists unpaid customer invoices; a primary tool used by collections staff to determine which invoices are overdue for payment. The AR collection process is used to evaluate how long customers take to pay their invoice. This process flow outlines the AR aging and collection process.
AR and Cash Application Process Flow
Cash application is a process relating to accounts receivable (AR), where incoming payments are applied to the corresponding customer invoice. Whether it is a cash or wire (EFT) payment, a monthly bank reconciliation is performed by the accounts payable (AP) assistant and the AR assistant within two days of month-end. It is then reviewed, signed off and filed by the financial controller. This process flow focuses on the AR and cash application process.
Back Office Process Optimization Report
This sample audit report benchmarks the costs and productivity of back office processes, with an emphasis placed on process standardization, reduced transaction processing times, and enhanced accountability with clearly defined roles and responsibilities.
Billing and Collections Review Audit Report: Hospitals and Clinics
This audit report sample focuses on accounts receivable controls and processes at hospitals and healthcare clinics.
Billing and Collections Review Audit Work Program (Healthcare)
This work program reviews billing, collections and account follow-up processes for a healthcare organization.
Billing and Credit Memo Process Review Audit Report
This audit report focuses on the customer billing and credit processes for invoices and credit memos.
Billing Controls Questionnaire
This is an example of a preliminary assessment questionnaire which can be presented to managers or process owners prior to conducting an audit.
Business Process Effectiveness Review Report
This audit report reviews specific finance processes for process effectiveness and efficiency, including financial planning and forecasting, accounts payable, accounts receivable, credit and collections, inventory (cost accounting), and procurement and capital asset management.
Cash Management Policy
This sample outlines cash receipts, cash disbursements, and general cash management policies and procedures.
This policy outlines procedures to manage and account for company cash funds including receivables, payables and petty cash.
Cash Receipts/Collections Best Business Practices Checklist
This checklist contains a set of questions that can be used to determine the extent to which various best business practices are being followed in the areas of Collections and Cash Applications. The answers to these questions will help to determine areas for improvement.
Charge Master Maintenance Audit Work Program (Healthcare)
The objective of this audit program is to analyze and evaluate the adequacy of the charge master maintenance process to verify that all charges are developed in accordance with hospital policy and philosophy.
Charity Care Audit Work Program
The objective of this audit program is to perform a high-level review of charity care program practices to validate compliance with hospital policy. Steps include performing a detailed analysis of a sample of charity care accounts to evaluate adherence with the hospital's charity care program policy. The audit program also provides steps to perform a high-level review of bad debt accounts to determine if documentation exists to support that each account was considered for charity care eligibility.
Claim Resolution/Payment Verification Policy
This sample outlines a set of policies and procedures for ensuring that claims submitted to third parties for services administered are estimated accurately and resolved in a timely manner. Note: This example includes some information specific to Texas, but is otherwise generally applicable.
Consolidated Financial Statement Reporting and Disclosures Policy
This policy outlines procedures to ensure the completeness and accuracy of financial disclosures made in quarterly and annual public filings with the SEC.
Control Self-Assessment Questionnaire: Credit
Self-assessment is a recognized best practice that has been applied to risks and controls for many years. This questionnaire can be used to assess an organization's credit process.
Control Self-Assessment Questionnaire: Accounts Receivable
Self-assessment is a recognized best practice that has been applied to risks and controls for many years. This questionnaire can be used to assess the internal controls in place for an organization’s accounts receivable process.
Corporate Accounts Receivable, Credit, Collection and Cash Application Processes Audit Report
This audit report summarizes findings from a review of accounts receivable, credit, collection and cash application processes.
Credit and Collections Policy
This policy defines credit and collection responsibilities and establishes minimum credit and collection guidelines. It establishes a process for the credit and collection of accounts receivable in a nondiscriminatory manner, while maximizing the company’s profitability by maintaining a moderate level of investment in accounts receivable, minimizing write-offs of bad debt and maximizing sales. In this example, it is the responsibility of the credit and collections department to enforce this policy under the direction of the corporate controller and chief financial officer. This policy may be modified to suit economic conditions, competitive situations or company strategy.
Credit and Collections Policy: Sample 2
The collection of accounts receivable is an important process in the overall revenue cycle that directly impacts cash flow. The formal collections process occurs when a customer account becomes past due, based on the invoice date. This policy outlines a set procedures for credit and payment collection activities, including the use of a payment discrepancy tracker (PDT). The procedures apply to a company's employees at all locations involved with the PDT and collections processes and related activities.
Credit and Debit Memo Policy
The following sample outlines a set of policies and procedures for issuing credit and debit memos, including product and container deposit returns and head-office billings, and applies to all employees responsible for the initiation, recording, and authorization of all types of customer account credits and debits.
Credit Card Data Purge Policy
This policy outlines a set of procedures for the credit card data purge process including specific purge procedures, a purge schedule, and related definitions.
Credit Card Information Handling Policy
Use this policy to ensure that credit and debit card information and other personal financial data is accessible by a limited number of authorized team members and maintained in accordance with applicable law.
Credit Evaluation and Collections Review Report
This 66-page audit report focuses on the credit evaluation and collections review process. The objective is to obtain an understanding of the existing processes, assess the internal control environment, and identify opportunities for process improvements. The Best Practices section provides numerous examples of opportunities where the credit and collections function could implement new processes and significantly improve controls and efficiencies, while the Benchmark section contains cost, quality and time performance measures that compare the sample company against “best companies” in its database and highlights additional opportunities for improvement.
Customer Care & Order Fulfillment: Control Analysis & Segregation of Duties Audit Work Program
This work program evaluates the adequacy of internal controls in the customer order fulfillment and cash handling processes. It includes a checklist of control activities and a related cash handling segregation of duties matrix.
Customer Credit Data Analytics Work Program
This eight-page work program utilizes data analytics to review the customer credit process.
Customer Master File Maintenance Policy
The purpose of this policy is to establish the guidelines for setting up new customers and modifying existing customer information in company systems. This document outlines steps to follow for new customer set-up requests, rush set-up requests, and customer information changes.
Data Analytics by Business Process
Data analysis using common spreadsheet and software tools can quickly reveal anomalies that may indicate fraud or control problems within a process. This tool lists sample data analytics that can be run for common business processes: procure-to-pay, order-to-cash, human resources, inventory and finance.
Debt Covenant Policy
This policy sample sets forth appropriate guidelines for monitoring and complying with debt covenants related to financing activities.
Direct Charges Audit Work Program
This sample audit work program provides steps to review the direct charges process, including investigating the build-up of direct charge transactions (debits) in the direct charge clearing account.
Domestic Intercompany Accounting Policy
This policy outlines procedures for recording accounting transactions that occur between two or more company locations.
Due Diligence Checklist
This document provides a list of items to consider when performing due diligence on a potential acquisition.
Duplicate Deductions Policy
This policy outlines a set of procedures for identifying and correcting duplicate deductions and/or rebate payments in a retail environment.
Financial Due Diligence Report
This sample report presents findings from a financial due diligence analysis of a company being acquired.
Financial Systems Policy
This policy addresses the development, implementation, enhancement and maintenance of financial systems such as the general ledger system, accounts receivable system, accounts payable system, fixed asset system and purchasing system.
Fraud Detection - Scenarios & Tests by Process
This guide provides examples of fraud, and analytical procedures used to detect them in six areas.
Fraud Prevention Process: Debit and Credit Card Transactions Audit Work Program
This audit work program identifies and evaluates the effectiveness of a debit and credit card service provider’s fraud prevention process. It views the reports utilized to monitor fraudulent activities involving debit and credit cards and system settings intended to identify potentially fraudulent transactions. For this audit, obtain the following documentation: organizational chart for the audited department; policies and procedures for the fraud department and any other departments involved in fraud prevention/detection via the system; a report of standard system settings including, if possible, a description of the setting; a list of reports generated via the system or utilized in the monitoring of fraudulent activities involving debit and credit cards including, if applicable, signature-based transactions; a copy of the latest report of the fraud department’s key performance measures.
Freight Claims Policy
This policy focuses on processing freight claims for shipments where the carrier lost and/or damaged goods during shipment, or where there is a shortage in the delivered goods.
Hotel Accounts Receivable and Credit Review Audit Work Program
This audit work program focuses on the accounts receivable and credit areas of a hotel or hospitality property.
Insurance Verification (Healthcare) Policy
This sample policy outlines a set of policies and procedures to ensure patient benefits are verified prior to or immediately following an admission or outpatient procedure. This document discusses topics such as insurance verification, insurance authorization for planned procedure, and uninsured patients.
Intercompany Reconciliation Report
This document focuses on reducing the intercompany out-of-balance differences to an immaterial amount for the month-end close process.
Internal Controls Checklist
This checklist of common business process controls can be used during the audit planning phase to guide the creation of internal audit work programs. Example business processes in this questionnaire include: accounts payable, accrued liabilities and other expenses, intangibles, and shareholders’ equity.
Internal Financial and Management Information RCM
This document outlines risks and controls common to the internal financial and management information process.
Invoice Deductions Policy
This sample outlines a set of policies and procedures for analyzing and dealing with customer invoice deductions in a retail environment.
Invoice Deductions Policy: Sample 2
This policy outlines a set procedures for dealing with invoice deductions in a retail environment.
Lockbox Process Flow Chart
Lockboxes are unique depository bank accounts that can be set up to process customer payments to your business. Customer’s payments to your organization are delivered directly to your lockbox and customers' payments are then delivered to your bank to be deposit directly into your account. Lockbox services offer benefits, including more convenient and simple depositing and crediting of checks. This process flow focuses on the lockbox process, from the time the check is received at the lockbox through posting the payment to a customer billing account.
Lockbox Accounts Key Performance Indicators (KPIs)
This tool explains how lockbox accounts can reduce the effects of processing float and the overall cost of cash processing.
Membership and Billing Audit Work Program
This audit program reviews the membership and billing process within a healthcare cooperative.
Monthly Financial Close Process Checklist
This checklist includes a variety of tasks to consider throughout the monthly financial close process.
Order Entry, Billing and Shipping Process Flow
There are many steps involved from the time a customer places an order to the time their order is delivered to them. To manage the many steps, this process flow provides a sample process flow for order entry, billing and shipping.
Order-to-Bill Audit Work Program
Specific objectives of this order-to-bill audit program include ensuring orders are accurately filled, using old/obsolete inventory, and accurate customer billing.
Preliminary Controls Assessment Questionnaire: Billing, Accounts Receivable, Credit and Collections
This is an example of a preliminary assessment questionnaire that can be presented to managers or process owners before conducting an audit of the billing, accounts receivable, credit, and collections process. It is intended to help the internal audit department understand existing business processes and management's view of the internal control environment.
Prepaid Expenses Policy: Sample 2
This document outlines a set of policies and procedures for prepaid expenses, which are defined as costs incurred to acquire an economically useful good or service that has not yet been consumed in the revenue earning process. These unexpired costs generally include items that will be consumed within one year or less.
Process Accounts Receivable, Credit and Collections Key Performance Indicators (KPIs)
This benchmarking tool outlines key objectives for processing accounts receivable, credit and collections; the outcome measures associated with each objective; and the activity measures that drive each outcome measure.
Product Pricing Process Flow
Product pricing is the process a business goes through when it sets the price to sell its products and services. This process flow focuses on the product pricing process.
Project Management Process: Monitoring, Scope Changes, Forecasting and Contract Closing Process Flow
There are many steps involved in the project management process, such as monitoring, forecasting and contract closing. In this sample process flow, the risks associated with project management and controls to mitigate associated risks are outlined.
Rebate Payments Policy
This policy establishes procedures for identifying pending rebate and for calculating the appropriate payment value.
Rebate Process Audit Report
This audit report evaluates current processes in place to calculate and record rebate information sent by distributors. The internal audit team also assessed the overall maturity of the business process with respect to six essential elements of infrastructure using a capability maturity model. The report highlights both “where the company is at present” and “what the future state of each process may look like” in a more mature state.
This policy is intended to provide a standardized means of identifying and accounting for the retainage of funds related to large scale projects.
Revenue and Accounts Receivable Process Flow
This process flow details the steps involved in the processes within the revenue and accounts receivable function.
Sales and Marketing Development Process Flow
There are two primary ways to allocate marketing development funds (MDF). In an annual MDF budget model, the executive management team authorizes the budget for MDF at the beginning of the fiscal year. In an incremental MDF model, programs and budget requirements are added and throughout the year based on business needs and requests from product management, senior management and finance. This process flow focuses on the sales and marketing development function.
Sales Order Entry Questionnaire
The purpose of this questionnaire is to document a review of the sales order entry process. This process focuses on evidence of an arrangement, delivery, price and fees, international requirements, and collections.
Segregation of Duties in Significant Cash Receipts Applications Questionnaire
This form has been designed to highlight potentially conflicting duties performed by one individual which could impact the effectiveness of controls over a cash receipts application.
Segregation of Duties Questionnaire: Cash Receipts in Significant Accounting Applications
A fundamental element of internal control is the segregation of certain key duties. This questionnaire focuses on the cash receipts process in significant accounting applications.
Segregation of Duties Questionnaire: Accounts Receivable
This questionnaire addresses segregating duties related to the accounts receivable process.
Segregation of Duties: Controls for Significant Accounting Applications
Segregation of duties is an integral part of the internal control environment. The following assessment form will assist you in understanding a function’s segregation of duties and related internal control effectiveness. Sales, accounts receivables, related cash collections are included.
Short-Term Investments Borrowing RCM
This document outlines risks and controls common to the short-term investments and borrowing process.
Signature and Authorization Policy
This policy documents the signature approval and authorization requirements necessary to commit company funds or assets related to trade promotion and pricing.
Site Audit Questionnaire
This questionnaire includes an extensive — but not exhaustive — list of questions typically used to drill down to the facts and figures needed to create a credible site audit.
Special Payment Policy
This sample policy establishes standard procedures for using payment terms to designate payment handling when approving invoices.
Trade Accounts Receivable Policy
This sample policy ensures that trade accounts receivable are recorded accurately, completely, timely, consistently between business units, and in accordance with GAAP and SEC regulations.
Treasury Internal Control Questionnaire
This sample questionnaire can be utilized as a checklist of the basic treasury controls for a company function/process.
Warranty and Claims Benchmarking Tool
This tool collects data about how a company handles warranties and claims from both an accounting/financial perspective and an operational perspective.
Wire Transfer and Investment Work Program
This work program provides key steps for reviewing a company's electronic funds transfer process, which allows customers to send funds to or from another financial institution.