THE MANAGEMENT OF ACCOUNT RECEIVABLE

IN THE COMPANY

By : Anis Riyanto/ XII AK2 / 04

ACCO

UN

T RE

CEIV

ABLE

MANAGEMENT OF ACCOUNT RECEIVABLE

INTERNAL CONTROL OF ACCOUNT RECEIVABLE

ACCOUNT RECEIVABLE PAYMENT TERMS

REGISTRATION PROCEDURES ACCOUNT

RECEIVABLE

IDENTIFY DATA MUTATION ACCOUNTS RECEIVABLE

LOSS RECEIVABLE

Customer should be classified based on the criteria established in management

Transactions sale to credit must obtain approval from the part of the credits based on raw procedure that has been set

In the invoice must be attached the payment terms defined.

The accounts receivable function must perform well based on standard procedures that have been set

Billing activities should be controlled in either by virtue of raw procedure has been set

The cash receipt received billing based on the results of the standard procedure has been applied

The accounting should do a recording of receivables based on the procedure of raw materials which have been set

Terms n/30

Terms of 2/10, n/30

Terms of 2/10, 1/15, n/30

Terms of the EOM (end of month)

n/10 EOM

Regi

stra

tion

proc

edur

es

acco

unt r

ecei

vabl

e

Card receivable

The form of a journal that is required in the listing of

accounting

Sales Journal

Sales Return journal

General Journal

Cash Receipts Journal

CARD RECEIVABLE

Account Number Sheet

Name Terms

Address Credit Limits

Date Description FolMutations Ballance

Debit Credit Debit Credit

Card Receivable

Sales journal

Date Invoice Number

Debtor Name / Description

Payment Terms Ref

Amount

Receivable(D)

Sales (K)

General Journal

Date Description Ref Debit Credit

IDENTIFY DATA MUTATION ACCOUNTS RECEIVABLE

Calculating data mutation accounts

receivable

To obtain accounts receivable data to

each card receivables

Confirmation of accounts receivable

No Descriptions DocumentMutation

Of Receivable

1 Credit sales transactions Sales Invoice [+]

2 Sales return transaction Credit memo [-]

3 Removal of account receivable transaction Memorial proof [-]

4 Cash receipts transactions from accounts receivable

Cash receipts proof [-]

2 August Credit sales of goods “A” to Mataram Sakti Store Rp 20.000.000

5 August Credit sales of goods “A” to Begadan Store Rp 60.000.000

6 August Credit sales of goods “A” to Asia Store Rp 80.000.0009 August Receiption cash of payments receivable from Toko

Begadan Rp 40.000.000

10 August Accepted payment from Mataram Store Rp 10.000.000

11 August Acceptance cash of payment oreceivables form Asian store Rp 40.000.000

15 August Accepted payment from Mataram Store Rp 4.000.00016 August Credit sales of goods “B” to Begadan store Rp 10.000.000

18 August Credit sales of goods “B” to Asia Begadan Rp 15.000.000

20 August Sales return of goods “B” from Begadan Store Rp 20.000.000

21 August Received reports from Mataram Sakti Store that there had been a fire and PT ABC decided to abolish the accounts receivable to Mataram Sakti Store Rp 4.000.000

27 August There is a letter from Mataram, Mataram Sakti Store that get compensation from the insurance company so that it could pay off the remainder of the invoice and the payment will be realized on August 29, 2010

29 August Acceptance back receivable which has been removed Rp 4.000.000 from Mataram Sakti Store

PT ABC transactions (not a taxable entreprenuer) in August 2010 is as follows:

From the transaction, PT

ABC will hold a record of

journals as follows:

Date Description Ref Debit (Rp) Credit (Rp)

2010 2 Account Receivable 20.000.000

August Sales 20.000.000

5 Account Receivable 60.000.000 Sales 60.000.000

6Account Receivable 80.000.000

Sales 80.000.000

9 Cash 40.000.000 Account Receivable 40.000.000 10 Cash 10.000.000 Account Receivable 10.000.000

11 Cash 40.000.000

Account Receivable 40.000.000 15 Cash 6.000.000 Account Receivable 6.000.000

16Account Receivable 10.000.000

Sales 10.000.000 18 Account Receivable 15.000.000

Sales 15.000.000

20 Sales ReturnAccount receivable

20.000.000

20.000.000

21 Bad Debt Expense 4.000.000 Account Payable 4.000.000

27Account Receivable 4.000.000

Bad Debt Expense 4.000.000 29 Cash 4.000.000 Account Receivable 4.000.000

TO OBTAIN ACCOUNTS RECEIVABLE DATA TO EACH RECEIVABLES

Accounts receivable statement Letter to be sent to the debtor

(confirmation of accounts receivable).

list of accounts receivable balances that contains information about the

balance of accounts receivable of each debtor

on a certain date.

list the age of accounts receivable that contains information about the receivable debtors are each grouped by age of

accounts receivable

Positive

Confirmatio

n

Negative

Confirmatio

n

LOSS RECEIVABLES

The recording of the removal of accounts

receivable

Determination of loss on accounts

receivable

THE RECORDING OF THE REMOVAL OF ACCOUNTS RECEIVABLE

Direct write off method

Undirect write off method

DIRECT METHOD INDIRECT METHOD

Loss receivables not collectible period noted on acceptance receivables, receivables written off based on the number.

Loss Receivables Not collectible is recorded in the period the accounts receivable/Sales, based on estimates through adjustment journal :Bad Debt Expense xxx Allowance For Doubtful Debt xxx

Any deletion of accounts receivable, directly recorded on account receivables, with the loss of the journal:Bad Debt Expense xxx Account Receivable xxx

Any deletion of accounts receivable, is charged to the account Receivables Loss Reserves, with the journal:Allowance For Doubtful Debt xxx Account Receivable xxx

Statement of the debtor's Ability to pay the debts that had been wiped out: there are no journals

Statement of the debtor's ability to pay the debts that had been wiped out with the journal noted:Account Receivable xxx Allowance For Doubtful Debt xxx

Time of receiving payments from debtors who declared willingness to pay, noted by the journal:Cash xxx Bad Debt Expense xxx

Time of receiving payments from debtors who declared willingness to pay, noted by the journal:Cash xxx Account Receivable xxx

If the debtor was already eliminated coming in and directly pay the note with the journal:Cash xxx Bad Debt Expense xxx

If the debtor was already eliminated coming in and directly pay the note with the journal:Cash xxxAllowance For Doubtful Debt xxx

DIRECT METHOD VS

INDIRECT METHOD

DETERMINATION OF LOSS ON ACCOUNTS RECEIVABLE

Determination of the estimated losses of accounts receivable based on the number

of Sales (approach profit-loss)

Determination of Estimated losses of accounts receivable based on the balance of receivables (balance sheet Approach)

Determination of the estimated losses of accounts receivable based on the analysis

of aged accounts receivable

THANKS FOR YOURATTENTION