ACCOUNTING TREATMENT OF RECEIVABLES (AR)...

Especially in the trade (business area) is so competitive these days, it was a credit sale has become a necessity. If not, maybe the customer (even more) prospective customers will choose to buy from competitors (competitors) we are. Provide credit facilities to customers is a must. Sales trends by credit (payment in the future) lead to some issue (problem) in both the operational and administrative him (recording). How to classify Receivables (Accounts Receivable)?, How accounting treatment of receivable (receivables)? What's the problem (issue) usually occur in the accounts receivable? How to control (control) of receivables? If receivables difficult Bagimana billed? Will be discussed in this post and its series.


Which becomes our concern the accounting of its administrative side (treatment). Ranging from how to determine the amount of receivables (measuring), recognition (recognizing), grouping (classifying) and pelporannya (reporting / disclosure).

As for those who are in finance (financial) or the control of both, the determination of a credit policy syncronized with sales force, while minimizing the receivables not collectible (bad debt) is the main task will only be done well if supported by the administration accurate and timely.

We will start discussing this topic one by one ... .. I hope I had the opportunity (to set the schedule) in order to post them in full from his administrative (accounting treatment), credit policy, accounts receivable control (control of accounts receivable), to how to deal with bad debtors, how to deal with difficult debtors are collected, with the advanced professionalism that will continue to maintain the company image at the same time.

I'll start with "how to classify receivables" how to classify receivables (which in practice in my opinion is still mixed rada).

Often we have doubts in classifying accounts receivable. Many terms that are sometimes overlapping and tend to irregular, especially in the new companies that the system was not structured properly. Understandable, because small businesses (particularly the newly paved) is certain focus and direct all its resources for development, business development, while still on the administrative side of superiority after the limited human resources (as a consequence of the small capital, too, of course).

Often we see the balance sheet that contains two types of accounts receivable: Accounts Receivable and Accounts Receivable. What is the difference between these two types of these debts? Was this grouping is good?

Sometimes there is also a report of the element Wesel Receivables (Notes Receiavble) in the Balance Sheet. What types of receivables that? What's the difference with other types of receivables?

Not seldom do we find the financial statements (in this case mereca / balance sheet) that do not distinguish the types of accounts separately, but only mentioned the one that is: Accounts Receivable (AR) or the Receivables only. Why?

Read more at ... [[Accounts Receivable - Accounts Receivable Accounting Treatment]]

How much debt is reported?, What if the receivables are billed difficult or even failed to bill? When is a debt expressed as receivables not collectible (bad debt)? What's the anticipation? What is the loss reserve accounts receivable (Doubtful receivable allowance) and how to determine the amount? How clean? How debt elimination procedures (writte-off)?, When an account receivable may be in writte-off? How to control (to control) receivable? Follow the continuation of this series, be a member of: Accounting, Financial, Taxation new.