Accounts Receivable

Billing T&M/Contract Clients and In-house Sub-Contract work:

  1. T&M projects are billed directly to client and payable upon completion of work. (All exceptions and billing arrangements are decided and approved by Business/Office Manager)
  1. Person estimating, scheduling and preparing HRS job packets for T&M projects is responsible for preparing a field work order for job packet listing:

Customer information (all contact persons, telephone numbers, job number, job start date and general office estimate)

  1. Upon completion of project HRS should place job packet in a “Completed Projects” wall pocket located under or near the scheduling board. Each returned job packet should contain the following: A/R work order copies, payments and any materials receipts.
  1. It is the responsibility of the Business/Office Manager or Administrative Assistant to pull job packets from “Completed Projects” wall pocket, and the Customer T&M file from “Jobs to Start” wall pocket, (also located under or near the scheduling board). Any materials receipts should be removed from job packet and copied for customer’s file (all materials receipts copies are to be placed in client file immediately upon making the copies) and filed in a corresponding vendor’s color coded “Receipts to Enter” file.
  1. If payment is made with credit card it is the responsibility of the Business Office Manager or Administrative Assistant to process the credit card payment thru credit card machine.
  1. Depending on your franchise a_____ % processing fee can be applicable for all credit card payments. If you use a processing fee, the customer should be informed of this policy and the fee after HRS tabulates total amount due for work completed and work order is presented to the customer for payment.

Determinewhich credit cards are accepted for payment:

Visa

MasterCard

Discover

American Express

Ect…..

  1. When a credit card payment is used; the work order must be stamped “Paid”, dated, initialed, w/card type, transaction reference number from credit card receipt and amount of transaction w/processing fee as follows:

06/17/05 BOM initials

Visa Ref# xxxxxxxxxx

$Amount

After payment is processed and above information is recorded on work order copies of both work order and credit card transaction receipt should be copied and placed along w/originals in file and submitted to Business/Office Manager’s for final processing of payment, deposit and job costing.

  1. It is the responsibility of the Business/Office Manager to record all client payments into Redhouse, deposits and job costing (for materials used from inventory) into QuickBooks.
  1. If completed T&M projects are paid by check the following process should be followed:

Job packet should be pulled from wall pocket and any materials receipts should be removed from packet and copied for client’s file and original receipt should be placed in vendor “Receipts to Enter” file.

Job packet with work order and check payment should be placed in client’s color codedT&M file and submitted to Business/Office Manager for processing.

Attach a copy of the remittance check to the back of the work order.

On memo line of check record the job and work order number as follows:

#100150136/WO #5096

  1. After processing of payments by Business/Office Manager the file should be returned to Business/Office Manager or administrative assistant for final job completion process.
  1. Upon completion of final process administrative assistant should place file into a “Pending T&M GP Reports” basket or folder. This final report should be printed from Redhouse and QuickBooks. The Gross Profit report should then be placed in client’s file 2 weeks after completion of project.
  1. When GP reports are completed the file should be filed into the T&M client files.

Contract Payments Process:

  1. All contract payments should be collected and submitted to Business/Office Manager w/client job binder for processing.
  1. Contract payments are collected in 1/3’s of total contract estimate and collected according to following schedule:

Signing payment is 1/3 of total contract estimate and collected by Remodeling Consultant when the final contract is presented to client for signature and collection of first payment.

Start of Work payment is the second 1/3 of total contract estimate to be collected by lead HRS at the end of the first day of production.

Third and final 1/3 payment of total contract estimate is to be collected by HRS upon completion of project and final walk thru w/client, RC, PM and HRS.

**Note: If payments are made by credit card the same process should be followed as with T&M projects paid by credit card w/ this exception:

Copy of Original Invoice should be retrieved from client job binder to record information on after credit card payment has been processed thru credit card machine. As with T&M work order credit card payments the Contract invoice and credit card transaction receipt should be copied and placed in client job binder and submitted for payment processing.The original transaction receipt and invoice should be placed in client’s file

  1. After receiving payment and client job binder all payments are recorded in Redhouse and QuickBooks for deposit. Payment is also recorded in the A/R spreadsheet for that customer.

On the memo line of check voucher record job number and invoice number as follows:

#100170136/INV #0078

  1. When final contract project payment is collected the job binder should be submitted to the Business/Office Manager or administrative assistant for transferring into a Color Coded “Client Contract” file and job completion final process. After final process has been completed the client file should be placed in “Pending Contract GP Report” basket or file. The Gross Profit report should be created in Redhouse and QuickBooks 30 to 60 days after completion of project.
  1. After Gross Profit reports have been created and placed in client’s file, the file should be filed in the contract client files.

Payments Received for Sub-Contract Work Performed by

Employees are processed as follows:

  1. A/R copy of sub-contract work invoice is pulled from the color coded folder for “A/R Invoices Due”.
  1. Confirm reference number and amount on remittance check matches the information on invoice.
  1. Stamp “Paid”, date, initial, check number and amount on invoice as follows:

06/17/05

Check #number

$Amount

  1. Remove bottom stub of check voucher and attach to back of invoice for reference.

e.On memo line of check voucher record invoice number.

Payment is now ready to be recorded in QuickBooks and deposited.

Preparing Deposits:

  1. After all payments have been processed and recorded in Redhouse (T&M/Contract Payments Only), and QuickBooks (All other remittance payments) a bank deposit should need to be prepared.
  1. Turn adding machine on “print” and add all remittances with grand total and item number listed (Item number represents each check of deposit). Tear off tape, circle grand total, date and initial. Set aside to be attached to deposit record.
  1. Deposit slip and remittance information is recorded as follows:

Current date at top of the deposit slip

Check number is written in first column and check amount in second column

Total of all remittances have been tabulated on adding machine. Record grand total amount from adding machine tape at bottom of columns and in box running length-wise along columns on deposit slip.

Record items number next to length-wise box.

Copy deposit slip. Copy remittance checks in batches on copy machine.