Hi Gurus,
I just got a offer for developing company's credit and collection process, but I only have limited knowledge about this area, and also not familiar with Accounts receivable, could any of you share some experiences? or suggest any book that may help???
Thanks for your great help in advance.
From China, Guangzhou
I just got a offer for developing company's credit and collection process, but I only have limited knowledge about this area, and also not familiar with Accounts receivable, could any of you share some experiences? or suggest any book that may help???
Thanks for your great help in advance.
From China, Guangzhou
Hi Please find attached the ebook.
Just a brief:-
* The Credit & Collections process starts with creation of an account.
* Once the account is created by Data Maintenance Team the Credit analyst works out the credit limit of the customer and if the customer is worthy enough to do business with. This is done by analysing the Company reports by different credit rating agencies like D&Bi, Finanacials, Trade Referances, etc.
* Once the credit limit is esteblished the orders are entered in the system by the order entry team. which is approved by the credit controller.
* Then the billing team invoices the customer.
* Once the invoice becomes due the Credit & Collections team starts following up with the customer in order to get the payment against the overdue invoices.
* Once the payments are received they are applied against the invoices as per remittance advise recived from customer,
* If there is any short payment received (Customer pays less than what they have been invoiced), also known as deductions, Credit & Collections team follows up with customer's AP and his own sales team to resolve the issues.
* Then at the end of every month the reconsciliation is done to ensure that the ledgers match.
Hope the ebook and the above process flow would be helpfull to you. :)
Wish you happy new year!!!!
From India, Delhi
2Just a brief:-
* The Credit & Collections process starts with creation of an account.
* Once the account is created by Data Maintenance Team the Credit analyst works out the credit limit of the customer and if the customer is worthy enough to do business with. This is done by analysing the Company reports by different credit rating agencies like D&Bi, Finanacials, Trade Referances, etc.
* Once the credit limit is esteblished the orders are entered in the system by the order entry team. which is approved by the credit controller.
* Then the billing team invoices the customer.
* Once the invoice becomes due the Credit & Collections team starts following up with the customer in order to get the payment against the overdue invoices.
* Once the payments are received they are applied against the invoices as per remittance advise recived from customer,
* If there is any short payment received (Customer pays less than what they have been invoiced), also known as deductions, Credit & Collections team follows up with customer's AP and his own sales team to resolve the issues.
* Then at the end of every month the reconsciliation is done to ensure that the ledgers match.
Hope the ebook and the above process flow would be helpfull to you. :)
Wish you happy new year!!!!
From India, Delhi
Hi, above things are very useful you can add some tips like Dunning Procedure which now a days MNC's and some Branded companies ,Banking Org., are following to collect credit with polite manner. Credit Collection is depend upon how you keeping track on their Accounts. they have some credit limits whether AR Team following that rules or not.also you need to prepare Aging report monthly and have some idea about Bad Debt which credits can be comes under such debts. apart of this check with your SLA's(Service Lable Agreement) what companies made agreement with them etc...
hope this will useful for you if you want more ,you are welcome to join our Professional Groups pahechan.in ...have a good day.
From India, Bangalore
hope this will useful for you if you want more ,you are welcome to join our Professional Groups pahechan.in ...have a good day.
From India, Bangalore
Hello colleagues please has anyone done a reserch on improving account receivables to enhance profitability in a company? I am an mba student and do not have basics in accountingam so I really need professional advise from you gifted people.
As fast as possible my deadline is tuesday 12th april
Kind regards, lilybaby
From Nigeria, Lagos
As fast as possible my deadline is tuesday 12th april
Kind regards, lilybaby
From Nigeria, Lagos
Have read the book thanks but I have a problem with getting researc questionsan objective and forming a questionnaire for improving account receivable to enhanvce productivity in a pharmaceutical company. Pls can anyone assist me. I am not an accountant by profession. Lilybaby
From Nigeria, Lagos
From Nigeria, Lagos
Hi, I have an experience in Accounts Receivable in BPO, We are giving finance support to GM Motors (Philipines) ,I don't know how useful it is but my experience saying to have control over AR Inventory, check all Credit Limit allowed to your companies customers ,prepare report like Customer Aging where you will find Credit limit and Collection pending. also Dunning Procedure will be helpful for you.These are very very important AR activities if you will have control on it you will be success on your aim....Thank You
From India, Bangalore
From India, Bangalore
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