New Accounts
1. Introduction:
This document sets out the procedures for the establishment of new credit accounts.
2. Purpose:
The purpose of this procedure is to standardise and meet legislative requirements in establishing new credit accounts.
3. References:
Accounts Receivable Process Specification Flowchart
Quotation Process – SM11
4. Definitions:
4.1. Terms of Payment: Outlines the payment terms ITM expects from its clients.
4.2. Standard Trading Conditions: The conditions under which ITM accepts work to be performed.
4.3. Freightpac: Computerized industry specific software
5. Procedure
5.1. Credit application is to accompany quotation prepared by sales and is to be filled out by all prospective new clients.
5.2. Terms of Payments form is to accompany quotation prepared by sales to all prospective new clients.
5.3. If customs clearance is to be performed then sales must also supply all new prospective clients with an Authorisation & Acknowledgment of trading conditions which should be filled out by the prospective client.
5.4. Standard trading conditions should accompany the quotation supplied by sales to the prospective client.
5.5. Completed Credit Application is to be submitted to the Branch Accountant/ Administrator.
5.6. Branch Accountant/ Administrator is to check the completeness of Credit application and obtain trade references. Refer to Trade Reference Request (FN12.5)
5.7. Branch Accountant / Administrator shall evaluate Trade Reference response. Refer to Trade Reference Evaluation (FN12.6)
5.8. If credit required by prospective client exceeds $5,000 then approval must be obtained in writing from the Financial Controller prior to any credit being extended
5.9. Approved applications must then be passed to operations by Branch Accountant and a copy forwarded to sales
5.10. Operations or Sales must then set up new client in computer (Freightpac) and set credit limits.
5.11. Declined applications must be forwarded back to sales from the branch accountant / Administrator.
5.12. Sales to liaise with prospective client with a view to alternative arrangements.
6. Documentation
FN12.3 Authorisation & Acknowledgement
FN12.4 Standard Trading Conditions
FN12.5 Trading Reference Request
FN12.6 Trade Reference Evaluation
