(B)

DEBT RECOVERY POLICY

Purpose
The purpose of the debt recovery policy is to provide management and staff with
guidance in the recovery of outstanding money due to the company. Utilizing this
policy will ensure a fair and consistent approach is applied to all our debtors.

Debt Recovery plan

Debt Recovery plan is a formal agreement between a debtor and a creditor that
addresses the list of terms and conditions and outline the consequences of the
payment not being made.

Debt Management Procedure

If payment has not been received within 30 days of the invoice date, a
statement will be issued to the debtor advising of invoices still to be paid.

Id the payment has not been received within 60 days of then the invoice
date, where possible, telephone/email is made with the debtor requesting
payment. Another statement is issued with an overdue stamp.

If payment has not been received within 90 days, a letter is sent to the
debtor advising that debt collection procedure will commence if the invoice is
not paid in full within 7 business days and all costs associated with this
process will be added to the outstanding debt.

If the payment has not been received within 7 business days of the date
listed in the letter, the debtors contact details are provided to collection
agency, who will issue a demand letter requesting payment within 7 business
days.

If the payment is not received within 7 business days employee/staff officer

will liaise with the relevant debt collection agency as to how to proceed.

(c)
 An aged receivable Report is a report that lists all customers with outstanding
balances and indicates the period overdue.
The aged receivable Report is used to follow up on overdue accounts.

(d)
Accounts receivable Tom smith 750
Accounts payable Sally smith 750
(adjustment of payment received
from sally smith)

Task 3
(b)

1. Alphabetical classification

Files and folders arranging in order of alphabetical of the names of a person

or organization. This method is simple, easy to understand and flexible.

2. Subject classification
In this system arrange files and folder according to the subject.
Eg:
sales
supplier Invoices
Bad debt
In this system can be separated to sub categories as well.
Eg:
Accounts
- Assets
- Banking CBA/NAB etc
-
(c) Purpose over a cheque requisition is to have a control/authorization over
the payments are been made. This can be used to request a payment or
reimbursement.

Greens Thumb
Nursery
 CHEQUE REQUISITON FORM
Use a separate form for each payee.
Receipts, Invoices and or/ other supporting Documents must be attached.

Request By: . Date:

.
Department: Phone:
.
Make cheque payable to: .
Address:
Amount: $
Description

Requestors signature: Date:

.
Managers signature: Date:
..