Invoicing and Debtor Management Procedure

Purpose. Describes how Meridian raises, checks, issues and follows up invoices so that revenue is recorded accurately and debtors are collected on time.

1.Timing

Retainer invoices are raised on the first business day of each month in advance. Project invoices are raised when a milestone in the projects system is marked complete and accepted by the client. Time and materials invoices are raised within three business days of month end from approved timesheets.

2.Preparing the invoice

Prepare the invoice in the finance system from the client record and the engagement terms. Check the client name and billing details, the description of the service, the period, the amount excluding tax, the goods and services tax, the total and the payment terms. Attach the timesheet summary or milestone acceptance where the engagement terms require it.

3.Review and issue

Every invoice above the value in the delegations register must be reviewed by the engagement lead before it is issued. Issue the invoice by email to the client's nominated accounts contact, record it in the invoices system with the issue date and due date, and file a copy in the client folder.

• Client details and engagement terms checked
• Amount, tax and total checked
• Engagement lead review where required
• Issued to the nominated accounts contact
• Recorded with issue and due dates

4.Receipts and reconciliation

Record receipts against invoices daily from the bank feed. Reconcile the debtors ledger to the bank at each month end and investigate every unallocated receipt within five business days. Credit notes must be approved under the delegations register and recorded against the original invoice.

5.Following up overdue accounts

Send a courtesy reminder seven days after the due date, a second reminder at fourteen days and a formal overdue notice at thirty days. At forty five days the engagement lead must contact the client directly and agree a payment plan or escalate to the Finance and Administration Manager. Work on an account more than sixty days overdue must not continue without the General Manager's approval.

6.Records

Invoices, credit notes, remittances and correspondence must be retained for seven years in the finance system and the client folder. The debtors ageing report must be produced at each month end and reviewed at the leadership meeting.