1.

Transactions

1.1. What types of accounts receivable transactions do you use:

1.1.1. adjustments?

1.1.2. credit memos?

1.1.3. debit memos?

1.1.4. deposits?

1.1.5. invoices?

1.1.6. guarantees?

1.1.7. charge-backs?

1.1.8. payments?

1.1.9. other?

2. Customers

2.1. Approximately how many customers do you have?

2.2. Are there hierarchies within the customer structure?

2.2.1. parent companies?

2.2.2. regional offices?

2.2.3. other?

2.3. How do you classify your customers:

2.3.1. channel?

2.3.2. product preference?

2.3.3. other?
2.4. What type of default information is required:

2.4.1. carrier preference?

2.4.2. purchase order required?

2.4.3. backorder allowed indicator?

2.4.4. substitution allowed indicator?

2.4.5. special packaging required, (e.g., shrink wrap, standard pallet)?

2.4.6. other?

2.5. What customer profile information is required? What is the information

used for?

2.5.1. summary information on order values?

2.5.2. order patterns (e.g., seasonal, promotional)?

2.5.3. order averages for value or quantity?

2.5.4. credit profile information?

2.5.5. other?

2.6. Do you have agreements with your customers?

2.6.1. Binding or non-binding?

2.6.2. Does it affect the payment terms, invoice frequency, invoice to or price?

2.6.3. Does it have an effective date?

2.7. Do you have tax exempt customers?

2.8. How do you track customer calls and follow-up actions?

3. Receipts

3.1. On average, how many payments do you receive per month?

3.2. Do you use charge-backs (debit item used to close an existing
outstanding debit item)?

3.3. Describe how payments are applied against open invoices, debit memos
or chargebacks.

3.4. Do you apply a single customer payment to all or parts of many debit
items?

3.5. Do you receive payments that do not pay customer debit items (e.g.,
refunds, interest income)?

3.6. Do you automatically apply payments received using predefined

application rules? For example:

3.6.1. apply to oldest invoice first?

3.6.2. clear the account?

3.6.3. clear past due invoices?

3.6.4. match payment with invoice?

3.6.5. other?

3.7. Do you need to reverse payments applied to items?

3.7.1. customer stops payment?

3.7.2. non-sufficient funds?

3.7.3. to re-enter and re-apply payment?

3.8. Do you use automatic lockboxes to receive payments (i.e., eliminate

manual data entry by automatically processing receipts that are sent directly
to your bank)?

3.9. Do you use direct debits (permission to automatically withdraw funds from
a customer's bank account and deposit into your account) and bills of
exchange (method for confirmation of each receipt with customer prior to
funds withdrawal) to collect payments from customers?
3.10. Do you receive unidentified payments (receipts where the customer is
unknown)?

3.11. Do you have unapplied cash (payment where you know the customer,
but you have not applied or placed on account all or part of the payment)?

3.12. Do you receive payments on account (apply all or part of the payment
amount to a customer without reference to a debit item)? Examples include
prepayments and deposits.

3.13. Do you use credit card payments?

3.14. Do you use third party financing?

4. Reconciliation

4.1. Describe the process you use to reconcile your accounts receivable (AR)
transactions.

4.1.1. determine beginning balance of a customer account,

4.1.2. roll forward activity for the month,

4.1.3. compare with actual ending balance.

4.2. Describe the process you use to reconcile bank statement transactions
for receipts (receivables) and payments (payables)?

5. Adjustments

5.1. Describe how adjustments are entered and applied. Are approval limits
required?

5.2. How are remaining balances adjusted?

5.3. Do you automatically write off debit items meeting specified criteria?

5.4. Do you require automatic adjustments to sales revenue credits to your

salespeople?

6. Finance Charges
6.1. Do you calculate and assess finance charges for your customers' past
due items?

6.2. Do you accrue interest and update the amount due remaining for past
due items?

6.3. Do you require the flexibility to include or exclude items in dispute when
calculating finance charges?

7. Posting / Closing

7.1. Describe your current closing schedule for receivables.

7.1.1. Is there anything special done at month end?

7.2. Do you post to the general ledger at the detail or summary level?

8. Inquiries

8.1. What types of on-line inquiries are required:

8.1.1. review customer debit items?

8.1.2. review customer and invoice information?

8.1.3. view the total of all open invoices for any customer?

8.1.4. review an exact copy of any invoice, including information such as

terms, salesperson, or invoice line details?

8.1.5. review a history of all activity related to a particular invoice, debit memo,
or chargeback including payments, credit memos, and adjustments?

8.1.6. other?

9. Reports

9.1. What standard reports do you use:

9.1.1. statements?

9.1.2. dunning letters?

9.1.3. aged trial balances?

9.1.4. key indicator reports?

9.1.5. other?

9.2. Are there any special reporting requirements?

10. Interfaces

10.1. What internal systems are interfaced with accounts receivable:

10.1.1. purchasing?

10.1.2. payroll?

10.1.3. accounts payable?

10.1.4. general ledger?

10.1.5. human resources?

10.1.6. customer information?

10.1.7. invoice information (sales orders)?

10.1.8. revenue accounting?

10.1.9. other?

10.2. Are there interfaces with any external systems?

10.2.1. EDI?

10.2.2. tax?

10.2.3. bank (lockboxes, direct debits, bills of exchange)?

10.2.4. other?

11. Security
11.1. Describe duty separation requirements.

11.2. Are there any restrictions on invoice entry by company or cost center?

12. Other

12.1. Do you perform cash (recognize revenue and expenses when cash is
actually hit) or accrual (recognize revenue when it is earned and expenses
when they are incurred) accounting?

12.2. How do you record adjusting entries?

12.3. List up to five best features of the current system

12.4. List up to five deficiencies of the current system

12.5. Are they any other special requirements that have not been discussed?

13. Volumes

13.1. How many periods will receivables data be kept on-line?

13.2. How many payment batches do you produce each period?

13.3. How many payments do you process each period?

13.4. How many payments to open invoices do you process each period?

13.5. How many other receipts do you process each period?

13.6. How many invoices do you process each period?

13.7. How many credit memos do you process each period?

13.8. How many debit memos and on account credits do you process each
period?

13.9. What is the average number of lines per invoice?

13.10. How many adjustments do you produce each period?

13.11. On how many customers do you maintain information?

13.12. What is the average number of sites per customer?

13.13. What is the average number of contacts per customer site?

13.14. What is the average number of telephone numbers per contact?