Accounts Receivable - Completeness, Write-Offs, and Manual Adjustment Testing

This template performs testing on invoice completeness, write-offs to invoices, and manual adjustments to invoices.

Input Requirements

• A customer invoice listing file sourced from your ERP system (SAP, Oracle, Microsoft Dynamics, etc.).

• A written off invoice listing file sourced from your ERP system (SAP, Oracle, Microsoft Dynamics, etc.).

• A manually adjusted invoice listing file sourced from your ERP system (SAP, Oracle, Microsoft Dynamics, etc.).

• A listing of valid invoice approvers.

• Parameters

  1. Infrequent Adjustment Threshold: Threshold to set a limit to determine which adjustment types would be considered infrequent

  2. Write-Off Threshold: Amount in which if exceeded would be alarming for a write off in total

  3. Manual Adjustment Threshold: Amount in which if exceeded would be alarming for a manual adjustment in total

  4. File Input Parameters

Output Expectations

• An identification of incomplete invoice entries.

• An identification of manual adjustments that exceed the customer's carrying balance.

• An identification of manual adjustments that exceed the threshold in total.

• An identification of infrequent manual adjustment types.

• An identification on which write-offs or adjustments were inappropriately approved.

• An identification of write-offs that exceed the customer's carrying balance.

• An identification of write-offs that exceed the threshold in total.

• An identification of write-offs which did not have recovery attempts.