Accounts Receivable Questions

Assets are things which is provide service for long duration it may 3 years 4 years or for long period of time.These items capitalize in our account books and charge depreciation in every year according to these rate it may 20 10 100

Sarbanes Oxley Act. Otherwise known as Public companies Accounting reforms and investor protection Act. It was enacted in 2002 in USA after lot of scams come up on accounting framework whereby investors lose faith and confidence on accounting disclosures.

Issues related to AR
1. Invoice discrepancies / no proper documents
2. Services / goods delivered not satisfactory
3. Customer do more negotiation even your invoice as per agreed terms and conditions
4. Very Important issue if no proper follow up from your side my result you receivable to Bad Debts

Accountants... in big organization there will be a department to maintain AR department.

A Customer Master Record is a permanent record that contains key information about a business partner or a material. This information must be entered into the system before any transactions can take place involving the business partner [customer] or a material. Entering all the information about a customer or a material into the system before making transactions insures that subsequent transactions or inquiries will have consistent data and reports and analyses can be done in an orderly way. Master Records can be edited or changed when necessary. Changing master records is frequently called "Maintaining" in SAP

Time periods you define to age your debit items. Aging buckets are used in the Aging reports to see both current and outstanding debit items. For example you can define an aging bucket that includes all debit items that are 1 to 30 days past due.

Normal table used for this Report is < 30 days 30-60 days 60-90 days 90-180 days and >180 days

As sales occurs every customer is not able to pay the bills that's where A/R are occurs the goal of A/R is to maintain summarize & record all the transactions related to unpaid a/c or future collections or A/R.

The  largest component of National income is service sector.