Purpose:

The purpose of this accounts receivable policy is to outline how to properly bill customers and collect payment from outstanding accounts by collaborating efficiently with the sales team and prioritizing positive customer relationships.

Defining Accounts Receivable

Accounts receivable (AR) is the balance of money due to Sourcegraph but not yet paid for by customers. Accounts receivable is listed on our balance sheet as a current asset. An account receivable balance arises when the Finance team issues an invoice via Xero after a deal is won in Salesforce. The invoice is generated based on the terms of the signed customer agreement. An invoice for an expansion can also be based upon written customer approval (i.e. via signed order form). Sourcegraph customer agreements typically require payment at the beginning of the service term (i.e. net 30 days). The balance is reduced when payment is received, an invoice is voided, or an invoice is credited.

Efficiency in Billings

The Finance team has identified invoicing delays occur primarily due to missing contact or PO information. As such, these delays can be resolved by sales teams performing the following:

• Ensuring the correct email address and contact information for the customer billing contact at the time of invoice.
  • Please note our order forms include a billing address and AP contact form to be completed by the customer.
  • Customers often have emails designated for payment correspondence with addresses such as finance, accounts-receivable, ar, billings, etc.
• Determining whether a PO is required from the customer and, if required, having secured the PO at time of invoice.
  • We recommend sales team members to inquire about PO requirements as a deal is finalizing. Please note our order forms include a PO requirement box to be completed by the customer.
  • PO correspondence can be directed to [email protected]. Once the customer provides a PO, we can issue an invoice which includes the matching PO as reference for payment.
• Please also note that invoice payment dates are based on the date of order form signature (i.e. net 30).

AR Aging Analysis

Please see our AR Aging Analysis process outlined here.