1. Receive, collect, check and perform reconciliation of receivable documents
After Export division 1, Export division 2, Sales division 1, Sales division 2, and Garment Trading Center sign contracts, sales orders, and delivery notes. Those documents will be passed to receivable accountants
Original Sales invoices are issued by Forwarding and Services Department and the second invoice slip will be sent to receivable accountant for checking purposes
Forwarding and Services Department send 3 files to receivable accountants on a daily basis including of:
- Garment Sales revenue
- Fabric Sales revenue and others
- Cash collection detail
Receivable accountant checks information of contracts, invoices and goods delivery notes. If deficiency was found, it will be informed to the Forwarding and Services Department to make cancellation minutes of invoice. This cancellation is acceptable within the current month, otherwise customers are required to issue invoice back to COMPANY.
2. Generalization data of revenue and receivable:
Prepayment revenue:Record prepayment revenue amount for sales orders. Most of the orders require prepayment from customers.
Account receivable tracking:Receivable accountant records account receivable according to file of list of invoices which are updated by the Forwarding and Services Department
Payment, offset receivables:Receivable accountant record receivable amount into system based on cash report from Forwarding and Services Department, cash and banking accountant
- Customer can make multiple payments for an invoice
- Customers can settle one payment for many invoices
Receivables can be offset in following cases:Offset with trade discount, return of faulty goods, reversed compensation invoice issuing for COMPANY from customers. For examples:
Example 1: COMPANY sold 100 of goods to customer A, discount 10% (USD 10), customer A requests COMPANY to issue invoice of USD 100 and then customer A issues trade discount invoice of USD 10 to COMPANY to reduce debt.
Example 2: Customer issues invoice to offset debt with COMPANY according to the faulty or compensation goods value.
Agency commission is calculated according to sales order:
- Commission of agency is calculated according to the approval emails of sales department when signing the contracts. Receivable accountant will check payment request again before passing it to cash accountant to pay money.
- Agency commission is booked directly to expense account.
Calculation of interest for overdue accounts receivable:
- Date of interest calculation for overdue debt is based on the contract for each payment, in conjunction with assessment emails from authority level of the Sales Unit.
- Overdue interest is calculated by receivable accountant at the month end
- Reconciliation of aging report
- Receivable accountant makes accounts receivable balance report
- The problem is that sales divisions receive cancellation invoices from customers but they inform receivable accountant very late so receivable accountant could not update in time accounts receivable balance. Thus, confirmation letter can be not exactly to make reconciliation with customers
- Reconciliations with key customers are performed monthly.
Providing information to tax accountant to declare value added tax, export duties
- For value added tax input: tax accountant collects and manually books all invoices, vouchers for goods purchased, services rendered.
- For value added tax output: tax accountant receives list of invoices file which have been checked by receivable accountant.
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