Account Receivable Process

Hellos sir I want to know the Account Receivable Process would you please provide me the same ??

[Pathak]

As you wan to know the Account Receivable process

The AR process is the process by which businesses receive payments from customers for good quality or services sold.

The process has several steps:

Credit Decisions: the supplier of goods and services checks if the prospective customer is of enough credit worthiness to warrant the supply of the products or services under an account arrangement.

Billing and Bill Distribution: happens once the good/services have been supplied.

Payments: are completed by the customer once they are ready to pay.

Receipting, Allocations and Reconciliation:

This step is undertaken by an Accounts Receivables Officer.

The AR Officer identifies a payment deposited into the supplier bank account, receipts it into the AR system, allocates it to an invoice and reconciles to ensure that the payment is correct.

Collections: The Collections Officer identifies all statements that are short paid or unpaid as of the due date.

Disputes Management: if the customer disputes a bill/invoice typically, this step is characteristically managed between a Collections Officer and the customer.

Bad Debt: once the bill/invoice reaches a set date and/or is under dispute and is not resolvable to the satisfaction of the supplier, it would then be considered a “bad debt”.

Accounts Receivable Procedure