The 30-Day Satisfaction Guarantee Notice Template outlines the company’s return policy. Customer Service Representatives should process returns per the REV110-1 30-DAY SATISFACTION GUARANTEE.
All sales of products returned must be in accordance with the following return procedures in order to provide adequate control of inventory and timely refunds to customers. This template applies to all products and service parts sold by the company.
Any return under the company’s 30-day money back guarantee program will be refunded in full to the customer. Any returns after 30 days are not allowed without sufficient justification. These returns are subject to a 15% restocking charge and cannot be returned for credit without the additional approval of the Credit Manager.
The Credit Manager should proceed with the collection process by completing an Account Collection Control Log Template. This form will assist in planning and tracking the collection effort. Depending on the amount and the customer situation, the representative can choose to follow-up with collection letters, telephone calls or both.
Keep in mind no matter how careful customers are screened prior to credit approval, slow pay or delinquent accounts will occur from time to time. Once an account becomes past due by even a few days, the collection process should commence immediately. Studies have shown that the sooner the collection process starts then the more likely that the debt will be collected.
Record all actions taken (late payment notice, telephone call, etc.) with a date on the REV109-1 ACCOUNT COLLECTION CONTROL Form filed in the customer folder. All customer agreements and explanations should be noted. If payment has not reached the company by the expected date, immediate follow-up action should be taken with another collection call or letter. The longer an overdue account is ignored, the longer the customer will ignore it, too.
An Accounts Receivable Template for Write-Offs will be issued for uncollectible accounts, as determined by the Credit Manager. Upon review of the REV106-2 ACCOUNTS RECEIVABLE WRITE-OFF AUTHORIZATION form, the accounts written off will be transferred from the Accounts Receivable ledger to a separate write-off ledger and control account for internal control purposes.
On a monthly basis, Accounts Receivable will generate an aged trial balance of customers’ accounts with individual invoice information and days outstanding and will forward to Credit for timely collection activities. Accounts Receivable will also generate monthly statements of outstanding customers’ accounts and issue them to customers no later than 10 days after each month end.
The Commercial Invoice Template is required for all International shipments. Make 5 copies of the final document. Attach one copy to the customer packet as a record for the customer files. Insert the original and 4 remaining copies into a plastic pouch attached to the outside of the package.
Incoterms should be listed on REV105-2 COMMERCIAL INVOICE and in your contract. Every Incoterm has its own unique three-character abbreviation. Every Incoterm must be accompanied by the name of a geographic place or range of places.
The company may not physically or electronically export or re-export items or provide services to any party, whether in the United States or abroad, who is listed on the United States government export exclusion lists, including but not limited to the Treasury Department’s Specially Designated Nationals List and Commerce Department’s Entity and Denied Persons Lists.
The salesperson should have the customer complete the Credit Application Template upon determining their intent to purchase products from the company, and return it by mail or fax. The salesperson should review the application for completeness and accuracy. Missing or erroneous information may result in delays or rejection of the application. The Credit Manager will review the credit application and the results of the credit investigation to determine approval or rejection of credit for the customer, and the credit line and terms authorized if approved.
Upon determination of the credit status of the customer, the Credit Department will complete the approval/denial section of the Request for Credit Approval form and forward it and the original REV103-1 CREDIT APPLICATION back to the originating salesperson for follow-up with the customer. If the application is rejected, the Credit Department will send out a standard credit denial letter to the customer and/or work with the sales contact to arrange possible alternate financing.
The salesperson should prepare a Credit Approval Request Template after reviewing the application and submit this form along with the customer’s credit application to the Credit Department for processing.
The Credit Department will review the REV103-2 REQUEST FOR CREDIT APPROVAL and application for the following key categories of information:
Legal name of business.
Trade name or “Doing Business As” (DBA) name.
Type of Business – Sole proprietorship, partnership, corporation, subsidiary or division, or nonprofit organization.
Complete address – street, city, state/province, zip code/postal code, and telephone number(s). A post office box is not acceptable.
Years in business – Credit risks increase for businesses in existence for less than five years.
Primary bank and the name of the applicant’s commercial loan officer. Since money can be moved around easily, a reference does not mean much if an account has had significant balances for less than six months. A year is much better. If an applicant switched primary banks within the past year, find out why.
Trade References – Five references are better than the standard three references. References will be contacted but should be expected to be favorable as people seldom give out “bad” references. Also some references could be friends or relatives.
The Credit Inquiry Request Template is part of the credit investigations process. The customer’s bank(s) should be contacted to determine how the customer handles their finances.
Contact each credit reference provided by telephone, fax, or mail. Each reference should complete a REV103-3 CREDIT INQUIRY form. The Credit Manager should evaluate the completed form upon its return. If additional information is deemed necessary, a Credit Bureau Report on the customer should be obtained. Note: written authorization is required for most inquiries.
The data collected above can be used to assign customer credit scores or ratings that can be used to segmenting that customer base by risk category. Segmenting the customer base by risk — high, medium, and low — allows the company to achieve collection efficiencies by better prioritizing accounts and identifying customer trends.
The Invoice Template should be prepared from the information from the Sales Order. REV106-1 INVOICE should include the invoice date, date of shipment, description of items shipped with model numbers, quantity, selling price, and extended amounts and the customer’s shipping and billing addresses.
You may add additional fees as needed. Calculate sales tax and add to the invoice as well as any other final costs.
Accounting is responsible for the timely preparation and distribution of invoices to optimize cash flow and customer payments. All Sales Orders will be routed on a daily basis to ensure prompt billing. Accounts Receivable will then prepare invoices to be mailed by the next business day.
The Order Form Template will be completed by the Sales Representative in order to finish the sales order. REV101-1 ORDER FORM covers the billing and shipping address, product order information, payment information, and more. It explains the terms for returns, shipping costs, and payment as well. Shipments for export outside the country of origin require extra preparation, documentation and handing.
Upon receipt of a complete sales package with all supporting documentation from the Sale Representative, the Sales Manager will validate all orders before acceptance. The validity and efficiency of the entire Sales Order Entry process is dependent on starting with accurate information. This step is vital to ensure that the terms, conditions, and configuration of the order are accurate and as agreed upon. Customer Service Representatives should process all requested changes to customer orders. For changes in quantity or delay in due date, Customer Service Representatives review the status of the order on the computer system and if the order has not shipped, make the appropriate changes as a new revision to the Sales Order.
The Phone Confirmation Checklist Template is used to confirm order details. Phone calls serve to confirm all information collected is accurate, that orders placed are valid, and that the customer agrees to all terms and conditions of the sale. Calls should be made only after all documents and data have been verified. This will ensure that any discrepancies found can be addressed during the first call made.
Ask to speak to the person that issued the Purchase Order or the one that signed the check/credit card receipt. Explain the reason for the call and proceed to confirm the order details as indicated on REV104-1 PHONE CONFIRMATION CHECKLIST.
Record the date and time, the name of the person talked to, answers to all questions, and note any comments or discrepancies. Sign and date the Phone Confirmation Checklist. Attach the completed form to the Sales Order.
If any information discussed is contrary to the sales order documentation, then advise the customer you will have to get further information. Place the order on Hold and contact the Salesperson for clarification or, if needed, discuss the discrepancy with the Sales Manager. Upon clarification or correction, complete the confirmation process.
Upon notification by the customer of the intent to return goods, the Sales Manager or the Service Manager will prepare a Return Goods Authorization Approval Template (RGA) and provide the RGA Number to the customer to identify the product upon return.
If the REV110-2 RETURNED GOODS AUTHORIZATION form is for defective product, a Customer Complaint Survey should also be completed. The RGA will be used as a receiving report for the return. All items received should be inspected, counted, and recorded on this report. The individual responsible for receiving the items will sign and date the report. Any damage and discrepancies are to be noted on this report and resolved by Customer Service Representatives.
If any goods are returned by the customer without a proper Return Goods Authorization Approval Template or other notification, the goods should not be restocked but should be held in receiving until either the Sales Manager or Customer Service Representatives complete a RGA or otherwise inform Receiving of the appropriate disposition.
The Sales/Service Manager should inspect and approve RGA returns from receiving. If the Returned Goods Authorization form is complete and satisfies the company Return Policy then forward the RGA to the Accounting Manager for return processing.
Develop your Revenue Policies and Procedures Manual easily using editable Word templates. It includes all steps from sales orders to collections using an effective accounts receivable procedures. This downloadable product is also included in the Accounting Policies and Procedures Manual. This accounting procedures manual includes prewritten MS-WORD procedures with forms templates for any purchasing department. DOWNLOAD yours now.
Make Your Accounts Receivables Procedure Easier
The proper identification and acceptance of all sales are an important element of collections using an accounts receivables procedure. It represents the primary source of most companies’ operational cash flow and therefore needs to be protected, managed and monitored using financial internal controls appropriate with accounts receivables. The included revenue cycle accounting proceduresshould be utilized to account for and recognize all sales income of the company. Use these accounting revenue cycle procedures to ensure efficiency and success in your accounting department.
This Revenue Policies and Procedures Manual was developed to assist organizations in preparing an Accounts Receivables Procedure Manual for any industry or business size. It can be custom tailored to fit one’s individual company concerns and operations.
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The Sales Order Template should be completed by the Sales Representative in order to finish the sales order. The information needed to fill out REV101-1 SALES ORDER can include completed company Order Forms, a customer’s purchase order, e-mails, request for quotes or proposals (RFQ or RFP), or credit card orders. Payment terms for the customer must be in accordance with the Customer Credit Approval and Terms procedure.
In the event the customer requires Lease Financing, the Sales Representative will work with the Credit Department to obtain credit pre-approval and facilitate processing of applicable paperwork. Shipments for export outside the country of origin require extra preparation, documentation and handing. Value-Added-Tax (VAT), duties, or taxes may be required depending on the destination country. Indicate on the Sales Order Template whether the duties and taxes should be collect or prepaid. Upon receipt of the completed Sales Order, Billing will prepare an invoice from the information provided on the Sales Order.
The Shipping Log Template keeps track of shipment pick-up information. If daily pick-up has been arranged place the package into the designated location for pick-up. If there is no daily pick-up then call the carrier and arrange the pick-up. Note: calls should be placed before 2 p.m. to provide the carrier with enough time to schedule a pick-up.
Prepare and maintain distribution records for shipments of all products. The REV105-1 SHIPPING LOG should be maintained and must contain the following information:
The Account Collections Procedure provides the methods for processing late or delinquent accounts.
The Account Collections Procedure ensures an optimum accounts receivable turnover ratio through timely and effective handling of late payment activity. This payment collection procedure applies to the credit department involved with collection of past due accounts receivable and sales or shipping departments. (8 pages, 981 words)
No matter how careful customers are screened prior to credit approval, slow pay or delinquent accounts will occur from time to time. Once an account becomes past due by even a few days, the collection process should commence immediately. Studies have shown that the sooner the collection process starts then the more likely that the debt will be collected.
Telephone communication will often speed up the collection process. Credit representatives, when speaking with a delinquent account, should observe a few tips or principles. Make sure to never argue, accuse or be condescending – Verbally fighting or talking down to the customer will only serve to produce negative feelings and may hamper the collection effort. The ultimate purpose is to secure payment, and this is best accomplished without becoming defensive or irritated.
Account Collections Responsibilities:
The Credit Manager reviews all records for a customer to determine a possible explanation for non-payment prior to commencing the collection process. Upon review, they should then proceed with the collection process by completing an REV109 Ex1 ACCOUNT COLLECTION CONTROL Form. This form will assist in planning and tracking the collection effort. Depending on the amount and the customer situation, the representative can choose to follow-up with collection letters, telephone calls or both.
The Credit Policy Procedure outlines the activities and responsibilities in obtaining a credit approval for a potential customer before sales orders are processed.
The Credit Policy Procedure reduces potential collection problems for your company. The credit policy also provides a process to evaluate and approve new customer accounts or customer credit limit increases through the use of credit scoring. These procedures are to be followed for all credit approvals requested by the Sales or Customer Service Departments for customers interested in open account, lease or rental financing. (16 pages, 3694 words)
This process starts with a credit application. The salesperson should review the application for completeness and accuracy. Missing or erroneous information may result in delays or rejection of the application.
Credit Policy Definition:
Credit scoring is the process of assigning values to various elements of a customer’s credit history and payment performance to quantify its creditworthiness. It is popular because it creates a common, unbiased approach to evaluating credit requests.
Credit Policy Responsibilities:
The Sales Representative is responsible for reviewing Credit Application for completeness and accuracy.
The Credit Manager is responsible for application review and investigation of the applicant’s credit history.