3 .5 ACCOUNTS RECEIVABLE
PURPOSE: To outline the policies and procedures for accounts receivable.
Accounts receivable records should be accurate, complete and maintained in a manner to indicate the length of time IGA account receivables are outstanding. IGA accounts receivable arise from sales on credit to members and customers for meetings registration, merchandise sales, exhibit booth sales, advertising, etc. Write-offs of uncollectible accounts should be done on an annual basis. Invoices must be sent to persons or entities that have purchased services or merchandise on credit. Invoices should be prepared and sent out no more than two weeks after granting the credit. Requests for payments reflecting outstanding balances should be mailed out on a monthly basis thereafter. The accounting consultant should post to the general ledger control account. A third-party service provider performs the account receivable functions. Any payments, partial payments, credits and other authorized adjustments to accounts receivable should be posted against corresponding invoices to maintain the accurate aging of the accounts receivable subsidiary ledger. The accounts receivable subsidiary ledger should be reconciled to the general ledger control account annually and all differences should be investigated and resolved. A review of credit balances should be performed periodically and accounts receivable aging reports be reviewed. Outstanding accounts should be reviewed one year following issuance of credit for likelihood of payments and those amounts deemed uncollectible written off by the Deputy Executive Director with the approval of the Executive Director after consultation with the Treasurer. Items that are two or more years old should be deemed uncollectible and automatically written off by the accounting consultant Personnel responsible for write-offs should use their best judgment in all cases. For example, a IGA member may have outstanding debt long enough for write off but if there is likelihood that payments will be sent those accounts should be left open. Write off should not be based only on time constraints. Where accounts had been written off in the accounting system, efforts to collect should continue for a reasonable period of time. All write offs should be approved by the Executive Director after consultation with the Treasurer. In the event that the Executive Director and Treasurer are unable to reach an agreement on proposed write offs, they will be forwarded to the full Executive Committee. To facilitate timely payments and less-write-off, incentive to payments such as discount for early payments may be established in appropriate circumstances. For events, registration discounts should be available for early payment of registration fees.
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IGA Accounting Policies and Procedures (guidelines)
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