Accounts Receivable Policy: Cash Receipts

The following sample outlines a set of policies and procedures for correctly dealing with and recording receipts of cash.

Under this policy, bank lockbox deposits are delivered via courier to a company’s accounts receivable (AR) department at scheduled times on bank business days. The delivery includes wire payments, which are considered their own deposits. A few wire remits are submitted to the company via other means such as email. The bank duplicates this process with its own remits on most wires. In addition, each deposit is applied as a separate cash batch to simplify balancing. The bank processes the checks and includes the remits and envelopes within each deposit.