Account receivable is one type of accounting transactions dealing with the billing of consumers who owe money to a person, a company, or an organization for goods and services that have been given to the consumer. This time will be discussed some general business rules and process that apply to Account Receivables.
Specific topic business rules in Accounts Receivable are:
- General Ledger or Project/Grant must be installed and set up for Accounts Receivable to function.
- When you are posting your accounts receivables to General Ledger, your debits must equal your credit (In other words, your accounting must be two-sided). However, when you are posting to Project/Grant, your debits do not have to equal your credits.
In addition, there are accounts receivable process sequence can be seen by Figure 1. Process begins with the new campaign in Podio and purchase order from client. After that, we can create specification account, add new customer, and then create an invoice.
Furthermore, sending invoices to client and collecting payment from clients. Full process can be seen in figure 1.
Figure 1. Account Receivable Process
If you are unable to collect payment and felt bad economic conditions currently. You might in bad mood, get frustrated, and losing temper. However a positive, patient and understanding attitude rather than harassment might get a better result or faster payment.
Don’t assume client wish to escape repayment. Therefore suggest trying to understand his situation. Keep a friendly and pleasant relationship with him. Maintain his respect. Don’t jump too quick to adopt a harrassing and threatening collection procedure. You might get result but you might lose this customer.
If the debtor tells you that he will pay you. Try to obtain a schedule instead of a vague promise. Try to obtain some type of payment immediately. Another positive approach is to help your customer recover his financial difficulty so that he can redeem what he already owes you and then he can continue as a loyal customer. Discuss a more flexible repayment schedule for the past due with him. If all positive methods appear achieving nothing, no doubt we have to consider more tougher approach.