Accounts Receivable

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Account Receivable System

Accounts Receivable (AR) is the payment which the company will receive for the goods supplied or services rendered from its customers. The accounts receivable or bills receivable will follow a Accounts receivable the heart of any business. Having an established process around AR is essential for success.

There is a direct link from Sales and billing to your accounts receivable process. OneBusiness is one of the best ERP software in India and has seamless integration between Sales and billing with financial accounting. The profitability is directly proportional to your focus on accounts receivable. AR is an asset, as it is related to the company’s revenue.

The accounting entries around Accounts
To record a sales transaction

AccountDebitCredit
Accounts receivableXXX 
Revenue XXX

To Receive a cash payment

AccountDebitCredit
CashXXX 
Accounts receivable XXX

What are accounts receivable?

Accounts receivable is the money-generated by the sale of goods or services customers owe you. Once you send an invoice, it becomes part of your accounts receivable – until you receive money from your customer. Tracking of these line items is utmost important for any business.

 

The accounts receivable process starts with billing and ends at receiving the cash. It will also include payment process, tracking, and debt creation

OneBusiness Payment Transaction Customer

This transaction will allow users to receive the payment based on the sales order billing and cash on delivery sales.

Bank Transaction upload

Alternatively, if you upload the internet bank transactions, it is possible to clear the open items.

Do you need Ageing reports of accounts receivable?

In OneBusiness ERP, If its due date hasn’t paid an invoice, it will start to include the days in the ageing report. The report will have a posting date, due date and the number of days elapsed over the due date. The traffic light will show you the current status.

How does OneBusiness Ageing report work?

The ageing report will show all the past-due invoices, based on the posting date. As an overview, you can see the right traffic light and take action. After certain days (say 90 days, it is changeable according to your business procedure) it will transfer the item to debt management.

Debt Management

Please check OneBusiness Debt Management to know more about how to handle debts. When the customer doesn’t pay your invoices, you would write them off as a bad debt or engage a third-party collection agent.

It’s a loss to your organization, and it’s essential to record that in your books. You need to initiate the process to claim the GST you had paid for that amount. We should allow sufficient time to write of a debt. The OneBusiness ERP and finance solutions will enable you to transfer the amount to a separate G/L account during this process.

We recommend having a well-defined business process to write off the debt. Companies will have a management working committees to decide on the action in such cases.