This policy outlines procedures for collecting on accounts receivable that have gone more than a specified number of days past their due dates without having been paid.
Most customers have defined payment terms to pay their invoices. According to the procedures of this policy, when an invoice has gone the specified amount of days past its due date without being paid, it appears on the past-due list. Any item displayed on this list is subject to a collection activity. Additional procedures include: collecting on past due invoices; involvement of collection agencies; and providing customer statements. Also provided is a standard response to unallowable deductions claimed by the customer.