If you find credits from a dealership on your AR list, what should your first step be?

The first step when encountering credits from a dealership on your Accounts Receivable (AR) list is to call the area accountant for clarification. This action is critical because the appearance of credits could indicate various scenarios, such as adjustments for prior transactions or potential errors in billing. Speaking with the area accountant allows you to gather specific information regarding the nature of the credits, ensuring that any actions taken are informed and appropriate.

By seeking clarification first, you minimize the risk of making hasty decisions that could lead to financial discrepancies, such as issuing refunds without a proper understanding of the situation. Understanding the context of these credits can also help you verify whether a refund is warranted or if adjustments to billing are needed instead. Taking this step positions you to handle the matter more effectively in accordance with company policies and accounting procedures.