Preparing to run accounts receivable statements

Preparing to run accounts receivable statements – running statements is a significant function of the accounts receivable process.  A statement is similar to map of the customer’s account, it provides the customer useful information about what is still due to the dealership, the aging of invoices, payments applied, recent activity, missing payments, and misapplied payments as examples.  Running statements is also a function in the collection process.

The customer also needs a statement in hand to reconcile or pay by the established due date.  The organization also requires a copy of the statement in hand to reconcile/process/post payments.  As part of the monthly duties, the accounts receivable team should assign a day that is observed as the specific day to always run statements,  (preferably as close to the end of the month as possible) occasionally it’s necessary to adjust the date if it falls on a non-work day.  Before starting the statement run, let’s do some house-keeping.

  1. Confirm all payments have been applied to all accounts.
  2. Any outstanding invoices that need to be posted?
  3. Is the customer information complete in the Data Management System (name, address, zip code?)
  4. Confirm all new accounts are supported by a credit application that is complete and approved.
  5. Adjust miscellaneous payments only if it’s evident the shortages or over-payments a limit that the organization establishes. For example, what is the point of mailing statements for 50cents when a stamp cost 48cents.