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Tim Selig Case Study

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There are two types of contract phases one for new contracts and another for renewals. New contract pricing is negotiated between USIC sales representatives and potential customers with corresponding approval by Tim Selig, Director and Senior Vice President. Note, a territory addition to an existing customer is considered a new contract. Contracts for new business are approved by the Director of Sales while existing contract renewals are approved by the Director of Business Operations. For contracts in which there are preemptive clauses for annual price increases, notifications to customers upon the increase are not necessary. In the case of a new contract or contract change implementations, pricing information is inputted by AB before …show more content…

The Accounting Manager signs and dates the printout which is attached to the JE as back-up support. Any variances will be investigated further. The allowance is calculated based on set % for aged receivables. Receivables aged 91-120 days is reserved for at 10% and balances aged greater than 120 days are reserved at 15%. In addition to reserving for aged balances, the AR aging report is reviewed for any specific invoices that management determines require a reserve. Once the calculation is prepared, it is reviewed and approved by either the Controller or Director of Finance. Credit memos/billing adjustments made to customer accounts are routed to Debbie Jones, Billing Manager, who approves them prior to being issued. Jones will notify Maria Ballard if there needs to be a credit posted to a customers account. Ballard will post the credit when the payment with the apporipirate credit is made. The Accounting Manager notes any reconciling items before passing it off to Jim Muhl, Controller, for

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