Shipping Freight Claims Procedure | PUR105

Shipping Freight Claims Procedure

The Shipping Freight Claims Procedure describes proper methods for shipping and filing freight claims so that your company can minimize damages to goods from consignment and recover full amounts for any losses incurred by shipping damage or loss of goods.

The Shipping Freight Claims Procedure applies to all goods shipped and received by domestic carriers and involves receiving and warehouse personnel and purchasing. (4 pages, 1177 words)

Shipping Freight Claims Responsibilities:

The Receiving Manager and Warehouse Personnel are responsible for receiving, inspecting materials, and forwarding all paperwork to the Purchasing Manager.

The Purchasing Manager is responsible for accepting or rejecting damaged goods and the filing of all freight claims.

Shipping and Freight Claim Definitions:

Bill of Lading – The documents made out by or on behalf of the shipper that constitute the contract between the shipper and the carrier for the carriage of freight. It may also be known as a waybill or airway bill. The Bill of Lading is a written acknowledgement by the carrier of the receipt of goods to be transported to a designated place and delivery to a named person or to his or her order Before accepting goods for transport, the carrier is required to issue a bill of lading.

Carriage – It is equivalent to the term transportation. Refers to the process or movement of shipments, including all services and operations of the carrier, provided by the carrier.

Carrier – It is the carriage (transportation) company taking responsibility (through the Bill of Lading) for transporting and delivering the consignment (goods) from the consignor (shipper) to the consignee (destination).

Consignment – It is similar to the term “shipment.” It refers to one or more pieces tendered by one shipper at one time, at one address, and receipted for in one lot, and moving on one Bill of Lading to one consignee at one destination address.

Consignee – The ultimate person or company, whose name appears on the Bill of Lading, to whom the shipment is to be delivered to by the carrier.

Consignor – It is also known as the shipper. It is the person or company that is originating or shipping the goods.

Shipping Freight Claims Procedure Activities

  • Shipping Procedure
  • Receiving
  • Claims Procedures
  • Additional Information Resources

Shipping Freight Claims Procedure References

  • Interstate Commerce

 

Problem Checks Procedure | CSH103

Problem Checks Procedure

The Problem Checks Procedure will help your company save time in handling, returning and following up on bad checks or checks that are unsigned, marked payment in full or returned by the bank as insufficient.

This problem checks procedure applies to your accounts receivable department. (6 pages, 845 words)

Unsigned, partial payment checks marked “payment in full”, returned, and re-deposited checks are some examples of such problem checks. With unsigned checks the word “over” should be typed or written on the line where the signature would normally appear. On the back, type “Lack of Signature Guaranteed” and then add the company name, manager’s name, title and signature.

If there’s no dispute as to the amount, a check tendered for less than the amount due and marked “payment in full” (or similar wording) can be cashed without jeopardizing the right to recover the balance. However, if there’s a bona fide dispute as to the amount owing, the store runs the risk that payment will be deemed to have settled the disputed claim for the lesser amount.

A returned check for less than $100 or stamped “uncollected funds,” should be re-deposited the following day as per CSH102 CASH RECEIPTS AND DEPOSITS, if the check is not already stamped, “Do Not Re-Deposit”.

In the event a re-deposited check is returned or if sufficient funds do not exist to cover the check, the credit manager should contact the issuer by phone to report the problem and discuss how the matter will be resolved. Then issue a formal notice CSH103 Ex1 BAD CHECK NOTICE via certified mail with a return receipt requested to ensure the customer understands the seriousness of the issue.

Problem Checks Responsibilities:

Accounts Receivable (A/R) is responsible for processing all check transactions.

Problem Checks Definition:

NSF – Non-Sufficient Funds. Checks are returned by the bank or other financial institution because the customer’s checking account does not have sufficient funds (enough money) to cover the check. Such checks are typically stamped “NSF”, “insufficient funds”, “uncollected funds”, or “account closed” on the reverse.

Problem Checks Procedure Activities

  • Unsigned Checks
  • Bad Checks
  • Partial Payment Checks Marked Payment in Full
  • Returned Checks
  • Redeposited Checks

Problem Checks Procedure References

  • Uniform Commercial Code (UCC)
  • Bad Check Law

Problem Checks Procedure Forms

Return Goods Procedure | REV110

Return Goods Procedure

The Return Goods Procedure outlines the steps and documents used for customers returning products to your company. The return and refund policy ensures adequate control of inventory and timely refunds to customers. The return goods procedure applies to all products and services sold by your company and affects the following departments: sales, customer service, inventory control, quality assurance and accounting. (6 pages, 1866 words).

Return Goods Responsibilities:

The Sales Manager, Customer Service Representatives, or the Service Manager will prepare a Returned Goods Authorization and resolve damages and discrepancies.

The Credit Manager approves refunds requested after a 30 day period.

The Accounting Manager prepares the customer refund for returned goods.

Return Goods Procedure Activities

  • Origination
  • Receiving Return Goods and Processing
  • Returned Goods Disposition

Return Goods Procedure Forms

 

Controlling Legal Costs Procedure | G&A106

Controlling Legal Costs Procedure

The purpose of the Controlling Legal Costs Procedure is to describe the methods for managing and controlling your company’s legal costs.

The Legal Cost Control Procedure applies to all individuals with the responsibility for contracting legal services and/or approving agreements, contracts, or any other legally associated transactions. (4 pages, 1001 words)

Controlling Legal Costs Responsibilities:

The Controller will resolve, negotiate, and examine all legal expenses.

Legal Counsel should provide the estimated costs of legal engagements and the most likely outcome.

Controlling Legal Costs Definitions:

Arbitration – a private, informal process by which all parties agree, in writing, to submit their disputes to one or more impartial persons authorized to resolve the controversy by rendering a final and binding award, which is enforceable in court. Accounting control procedures can be used for a wide variety of disputes from commercial transactions to labor grievances.

Declaratory Judgment – a binding judgment issued by the court that defines the legal relationship between the parties and their rights with respect to the matter before the court. Commonly used in contract disputes (especially useful if no physical agreement exists and or a suit has not been filed yet) to clarify what conduct is permitted or prohibited by the contract or to clarify the contract if necessary.

A declaratory judgment provides the opposing party (defendant) with the opportunity to pick and chose the venue or jurisdiction, and the parties to the litigation. In this manner the opposing party can steal the initiative, direct the litigation, and maximize its chances of winning.

Controlling Legal Costs Procedure Activities

  • Arbitration
  • Legal Services
  • Legal Billings

 

 

Point-Of-Sale Orders POS Procedure | REV102

Point-Of-Sale Orders POS Procedure

The Point-Of-Sale Orders POS Procedure provides methods for ensuring all sales transactions are valid and collectible. The POS transaction procedure also ensures your company’s inventory and cash records reflect the transactions correctly.

The Point-Of-Sale Orders POS Procedure calls for proper transaction control over sales by the CFO and proper authorizations by your company’s store manager. (4 pages, 1226 words)

Generally, the POS system automates the process of recording the proper price and cost (associated with the barcode) while determining the correct inventory amount associated with the transaction and adding the proper sales tax.

Tax-exempt transactions for customers that claim tax-exempt status should be based on proper documentation. Request a copy of a state approved tax-exempt certificate to be kept on file to support all tax-exempt sales. Your company may be required to produce proper tax-exempt sales documentation during a state sales-tax audit.

For POS registers that do not provide sales orders, a manual sales order book can provide the same memo ability. The information will have to be entered into the system once the sale has occurred. If a sales order book is used, (for phone in orders, deliveries, etc.), it should contain pre-numbered forms in duplicate.

Point-Of-Sale Orders POS Responsibilities:

The CFO (Chief Financial Officer) has authority to write off any accounts Receivable Account deemed not collectible.

The Credit Manager reviews Credit Application for approval of “house accounts”. The manager should periodically review the end of day gross margin reports for reasonableness in margins and sales tax charged. The manager should also periodically spot check specific transactions. Exceptions should be promptly followed-up.

Point-Of-Sale Orders POS Procedure Activities

  • Point of Sale
  • Sales Orders and Invoices
  • Sales Invoices and Accounts Receivable

 

Sales Order Acceptance Procedure | REV104

Sales Order Acceptance Procedure

The Sales Order Acceptance Procedure outlines the activities and responsibilities involved in verifying that all sales orders received by your company are acceptable before they are completed.

The Sales Order Acceptance Procedure implements a process to evaluate and approve all sales orders before they are entered into the accounting system—thus reducing potential problems and ensuring the highest level of customer service.

The sales order confirmation policy should be followed for all sales orders taken by your company’s sales or customer service departments. (6 pages, 1055 words)

Sales Order Acceptance Responsibilities:

The Credit Manager approves credit application and confirms order amount is within the approved credit line granted.

Sales Order Acceptance Definitions:

Sales Tax Exemption Certificate – A document typically used by a non-profit organization to certify an exemption from paying tax on a purchase. This is presented at the time of purchase.

Sales Order Acceptance Procedure Activities

  • Order Document Verification
  • Telephone Order Confirmation
  • Sales Order Acceptance

Sales Order Acceptance Procedure Forms

Taxes Insurance Procedure | G&A107

Taxes Insurance Procedure

The Taxes Insurance Procedure outlines the general areas of taxation.

The Taxes Insurance Procedure is used as a checklist or guide to comply with tax requirements related to each specific location and organizational structure, and it applies to the business activities of the company. (16 pages, 5915 words)

Taxes Insurance Responsibilities:

The Controller is responsible for determining all tax liabilities and fees, the dates due, and for ensuring the timely payment of each

Taxes Insurance Procedure Activities

  • Organization Fees and Taxes
  • Business Activity Fees and Taxes
  • Payroll Fees and Taxes
  • Excise Taxes
  • Other Taxes and Credits
  • Tax Payments
  • Insurance

Taxes Insurance Procedure References

  • Trust Fund Recovery Penalty

Taxes Insurance Procedure Forms

 

Progress Billing Procedure | REV108

Progress Billing Procedure

The Progressive Payment Policy is for creating progress billings payment for the portion of labor and materials used up to a certain point in time and before the project is fully completed. This improves the cash flow typical of long term projects or assignments. The Progress Billing Procedure applies to all service agreements or projects provided by the company requiring a progressive payment policy. (4 pages, 981 words)

Progress Billing Responsibilities:

The Project Manager is responsible for the confirmation of all final quantities..

The Administrative Services Manager is responsible for knowing the correct procedures to be followed for each contract.

Progress Billing Definitions:

Statutory Declarations – A statutory declaration is a sworn statement. For official purposes, it is signed by a person who is legally authorized to administer an oath (i.e. a lawyer, judge, or notary public).

Holdback Requirement – A condition in an agreement where money is withheld or “heldback” until a specific event or milestone occurs.

Progress Billing Procedure Activities

  • Contract Types
  • Breakdown of Contract Amount
  • Progress Billing Claims
  • Release of Holdback

 

Property Tax Assessments Procedure | G&A108

Property Tax Assessments Procedure

The Property Tax Assessments Procedure outlines the areas for review in assessments. The Property Tax Assessments Procedure also explains how perform a property tax assessment appeal.

Customize and apply this property tax assessments policy in your finance department for property tax assessments for all sites owned by your company. (4 pages, 1235 words)

Property Tax Assessments Responsibilities:

Financial Management is responsible for reviews of assessments including the review of Property Descriptions, validating record accuracy and submitting appeals to local Assessor’s Offices.

Property Tax Assessments Procedure Activities

  • Review of Assessments
  • Property Tax Assessment Appeal

 

 

 

Sales Tax Collection Procedure | REV107

Sales Tax Collection Procedure

The Sales Tax Collection Procedure outlines the sales tax rules, rates and exemptions so that your company can accurately and efficiently collect sales tax for goods and services offered.

The Sales Tax Collection Procedure ensures compliance with all state and local sales tax regulations and requirements. The tax collection procedure applies to individuals in sales and customer service who are directly responsible for the sale of products.(4 pages, 840 words)

Sales Tax Collection Responsibilities:

The Sales Representative is responsible for computing and adding sales tax to all sales quotes, or customer order forms.

The Accounting Manager is responsible for preparing all invoices showing all sales tax amounts collected.

Sales Tax Collection Procedure Activities

  • Basis of Tax
  • Applicable Sales Tax Rate
  • Nontaxable Sales
  • Sales Outside of State Jurisdiction
  • Sales Billing

 

 

Customer Property Procedure | INV104

Customer Property Procedure

The Customer Property Procedure defines methods used to identify, verify, protect and safeguard customer property while in possession of the company.

The customer property policy applies to all property the customers supply, including intellectual property, all product parts and tooling or fixtures used in manufacturing and inspection. This procedure includes the responsibilities for customer service, purchasing, production and engineering personnel. It applies to any items supplied by customers including: components and materials supplied for inclusion in product, tooling and fixtures used in manufacturing and inspection processes, and intellectual property for use and testing with software systems. (4 pages, 616 words)

When dealing with customer inventory, potential damage to their property is always going to be an issue. In the event of any damage, deterioration or unsuitability of customer supplied items, the procedure for Receiving and Inspection will be followed and an INV104 Ex1 MATERIAL RETURN NOTICE form will be prepared with the applicable information and returned to the customer. If for any reason there is a shortage or loss of items that is discovered after the original receiving report was prepared, the inventory control manager will issue a written report and forward to Customer service representatives for follow-up with the customer.

Customer Property Responsibilities:

Customer Service Representatives are responsible for notifying the production manager and the purchasing manager of the customer’s intent to supply materials during the quotation and contract review processes.

The Purchasing Manager is responsible for coordinating delivery of customer supplied materials.

The Production Manager is responsible for managing customer supplied tooling and fixtures.

The Engineering Manager is responsible for managing and safeguarding customer’s intellectual property.

Customer Property Procedure Activities

  • Receipt, Inspection and Stocking
  • Unsuitable or Missing Items
  • Customer Supplied Tooling and Fixtures
  • Intellectual Property

Customer Property Procedure Forms