Accounts Receivable Process
This document sets out the procedures for the maintenance of accounts receivable ledgers.
The purpose of this procedure is to standardise and maintain the company’s cash flow requirement as well as the effective minimisation of bad & doubtful debts.
Flow Chart of Accounts Receivable Process
4.1. Accounts Receivable: Commonly known as Debtors, is a company and or an individual that is indebted financially to ITM for services performed.
4.2. Outstandings: Moneys that are due outside trading terms.
4.3. Trading Terms: The agreed amount of time a client has to pay monies due. Final invoices are due and payable once they are in the greater than 60 Day column of the Accounts Receivable ledger.
Disbursement invoices are due and payable at the expiration of 14 days from date of invoice.