Accounts Receivable and Credit Policy in Receivable Management

Course Objectives
Upon completing this Accounts Receivable and Credit Policy in Receivable Management course successfully, participants will be able to:
• Establish effective credit policies that meet a company’s objectives
• Use billing best practices and techniques
• Employ effective collection policies
• Partner and associate with the sales force for the benefit of the company
• Evaluate and assess the accounts receivable process and implement best practices
• Practice and apply tools & techniques to effectively monitor AR performance
COURSE OUTLINE
Credit Policy
• Mission statement of Credit Department
• Roles & Responsibilities
• Credit Controller
• Manager- Collection
• Manager- Receivables
• Credit Evaluation
• Approvals as per Delegation of Authority
• Policy on Credit Cards
• Slow-Moving Accounts
• Policy on Provisioning
• Policy on Bad Debts
• Approval by the Board
Know your Customer
• Legal Status of the company
• Financial Standing
• Financial Statements
• Third Party Confirmations
• Anticipated Turnover
• Credit Requirement
• Setting Credit Limit
Minimizing Risk
• Customer Advance
• Bank Guarantee
• Insurance Guarantee
Invoicing System
• Receiving Orders
• Credit Limit Check
• Delivery
• Acknowledgement of Receipt of Goods
• Invoice
Recording
• Revenue Recognition
• Posting Sales Invoices
• Maintenance of Sub Ledgers
• A.T. Accounting
• Monthly Reconciliation of Sub Ledgers
• Regular Confirmation of Balances
Collection of Debts
• Modes of Collection
• Separate Bank Accounts for Revenue Collections
• Daily Postings of Collection
• Daily Bank Reconciliation of Revenue Accounts
Internal Controls
• Regular Review of Debtors Reports
• Age Analysis of Debtors
• Review of Utilization of Credit Limits
• Changes in Credit Limits with Due Approval
• Setting Targets and Tracking Performance
• Creating Action-Oriented Reports
• Measuring Team/Individual Performance
• The People Plan – Managing Performance and Motivating the Team
• Developing your Personal Action Plan
Addressing Delays in Collection
• Consistent Follow-up
• Personal Visits
• Regular Communication
• Identify Delaying Tactics
• Blockage of Account
• Legal Action, if required
Provisioning
• Company’s Provisioning Policy
• Debt write-off Policy
• Accounting for Post-Provisioning
• Accounting for Post- Write off

Methodology
The training methodology integrates lectures, interactive discussions, collaborative group exercises, and illustrative examples. Participants will acquire a blend of theoretical insights and hands-on practical experience, emphasizing the application of learned techniques. This approach ensures that attendees return to their professional environments equipped with both the competence and self-assurance to effectively implement the acquired skills in their responsibilities.

DATE:
1ST BATCH: 3rd – 6th June,2025
2ND BATCH: 16th – 19th Dec, 2025