Example Of Receivables

-Maintaining accounts receivable aging reports and constantly review and resolve past due, credit, and debit

First, we conducted risk-based approach with data analysis techniques-unusual invoice and unusual comments, to identify the unusual items that are in the accounts receivable detailed listing, and tested whether there are invoices outside the expected range of invoice number and “special” comments associated with accounts receivable items. As a result, there were no invoice number out of range, and Invoice 1000919, 1000845, 1001097 are “special” comments associated with accounts receivable.

Sales invoices are prepared in batches on a daily basis using numbered sales invoices. Sales invoice numbers are automatically generated by the company’s computer system. The accounts receivable clerk does not have appropriate computer rights to override the computer-generated invoice number. Upon preparing sales invoices, the accounts receivable clerk verifies that the first invoice number of the batch is consistent with the last invoice number of the previous batch. Inconsistencies or skipped sales invoice numbers are investigated and resolved before new sales invoices are prepared. The items shipped are compared to the items billed for proper quantity, price, and other sales order terms.

Further, it would open the business up to an increased amount of processing error. This could result in unhappy vendors who might cease working with the store, giving The Store a bad reputation resulting in loss of products in market consequently the potential decline in revenue.

In order to confirm the accounts receivable balances, I decided to use positive confirmations since this was my first time auditing the company and the collateral for the loan would be the receivables. The confirmations helped to verify the accuracy and existence of the accounts. I also calculated the Receivables Turnover Ratio in order to better evaluate the overall success of collection on accounts. The sample size that I chose was determined by the factors of tolerable misstatement, inherent risk, control risk, achieved detection risk

Invoicing is a best way to keep record of different business transactions (outside factory transactions) and sales or purchases for potential uses whereas, an excise invoice is one of the most significant business documents that is used by different organizations, businesses and manufacturing companies to give details and information about goods being issued by the manufacturing department or plant (outside the factory). These goods may be transferred from one plant to another for finishing, packing, any further work or may be issued to vendors and retailers for sale reasons. Excise invoice includes:

Accounts receivable are amounts owed by customers on account. They result from the sale of goods and services on credit. These receivables are generally expected to be collected within 30 to 60 days. They are typically the most significant type of claim held by a company. Accounts receivable and notes receivable resulting from sales are also known as trade receivables. Accounts receivable resulting from sales are referred to as trade receivables in Alcatel's financial statements.

Team 5 also recommends implementing an automated process system that automatically scans and enters invoices into the payment processing software. With the implementation of this software, Pay Later Invoices and Pay Now Invoices can be eliminated from the process. Additionally, Team 5 suggests moving the two employees from Pay Now and Pay Later Invoices to the Final Check activity. This will eliminate the bottleneck of over utilization at the Final Check because the number of employees increases to three. Although the utilization decreases by over 30%, it leaves room for variability and decreases the stress put

When dealing with accounts payable and receivable it is very important that the athletic department take care of both in a timely manner. Accounts receivable is money that is coming into the college for tickets, camps, or apparel; while accounts payable is the money that is paid to vendors for these and other services (NA, What is the difference between accounts payable and accounts receivable?, 2016). Apollo Creed, the associate athletic director at UNL, has trouble staying on top of both these areas and it has caused late payments that have cause the vendors to be upset because they do not get paid on time. Mr. Creed must develop a policy that the staff members of the athletic department must follow in

Tax invoice These are items that you are not responsible for – the assumption is that someone else will do them.

Rapid cash collections are indicative of high turnover; however, loss of customers to rival firms and tight credit levels arise from extremely high accounts receivable turnover level, (Horngren, 2013, p. 805).The accounts receivable turnover for Harry Jones in 2014 was 7.93 times. This figure decreased to 5.63 times in 2015. Both figures are less than the industry average of 9 times. Low inventory turnover levels might be attributed to reduced accounts receivable turnover levels throughout both 2014 and 2015. Inventory levels can be increased in the future to achieve higher accounts receivable turnover, (Horngren, 2013, p. 805).

The interview with Colin Smith, from Office Products Depot, meant I was able to identify the accounts receivable subsystem they used and their accounts receivable management. I focussed on their policies for the offering and checking of credit, managing credit levels, charging the credit customers, receiving payment from credit customers and the general management of credit customers. I will be using the information from the interview with Colin as well as information from fictitious accounts receivable to explain their policies.

When an account receivable is determined to be uncollectable it is no longer qualified as an asset and should be written off. A write off reduced the balance of the customers

It's also important to understand when these transactions are taking place. There is the chance that a customer has bought an item but takes a long time in paying it off. Although you might have made a  profit on the sale of the item, there is a cash flow gap as you have not yet received the funds to pay for the item yourself. Simple things like can put smaller businesses in a lot of financial trouble. This cash  flow gap could damage credit ratings, miss other opportunities, and force the borrowing of funds.

University of Phoenix. (2015). Working capital simulation [Multimedia]. Retrieved from University of Phoenix, FIN571 website