All A/R payments should be received via ACH, wire transfer, lockbox, or POS. If payments are received through POS, checks must be deposited at the bank within 24 hours. No VS/MC should be used as a form of payment. Is the store compliant with this process?
A/R Payments – Payments can be processed in several different ways – Including at POS.
If payments are made at POS – RM will need to sign-off on your documentation of transaction over $500
In the DSR – Stores should find the following as it relates to the payment: copy of the check, the check stub, POS receipt showing the payment applied to the account, deposit slip, and written notification to the RM notifying them of check over $500
A/R payment standards: The use of 'Auto-apply' should be used with extreme caution - payments must be properly applied. A remittance may be necessary for the store to properly apply the payment.
Payments must be applied to the proper account.
Use of auto-apply must be with extreme caution.
An account remittance may be necessary to apply the payments to the proper account.
Review CARP Setup.
Is the store implementing proper credit limits and utilizing system functionality to adhere to SKU restrictions? (Some accounts limit purchases of technology, clothing, etc.)
Review all active accounts in CARP for proper setup.
Credit limits must be reasonable or exact depending on the circumstances with each account.
Sku restrictions must be set in CARP during account setup. Some accounts require a restriction of specific merchandise
Are the end dates on the major accounts set to the end of the term (end of the financial aid or scholarship period)?
Are all processed/unprocessed Accounts Receivable adjustments in excess of $1000 appropriate? Multiple entries of adjustments that equal $1000 or more will need approval by the regional manager. (time frame last 6 months)
Account should always reflect the correct amount owed.
Adjustments should be posted as identified to ensure accuracy and timeliness.
Approval for adjustments to accounts may be required depending on the amount.
Review adjustments for the last 6 months to confirm adjustments are appropriate
Have all unpaid transactions on an account been invoiced?
Invoices should include rebill of all times greater than 30 days and accounts should be suspended for unpaid transactions greater than 90 days.
Stores must generate invoices for activity from the previous month no later than 5 business days the following month.
All invoices have payment terms of Net 30, which means payment is expected within 30 days of the invoice date.
All accounts must be invoiced for all unpaid transactions greater than 30 days.
Accounts that are overdue – older than 90 days should be suspended.