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Tag: Accounts Receivables

High Receivables

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You do not set up credit limits for customers, or you manually set up credit limits. Customers often go beyond their limit. There is a negative impact – it has caused high receivables and bad debt write offs. You manually track cash flow by customer and balances. Non-sufficient funds and finance charges are also tracked manually, but that takes too much time. You have to manually type letters and correspondences to customers, but this takes too much time. You do not have a way to automatically prompt yourself about certain events or activities. You use either Outlook or a calendar…

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Inaccurate Receivables

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Your process of entering in a sales document with a payment schedule is manual. You currently have to enter a sales invoice with a payment schedule as multiple invoices. There are errors made in entering these multiple invoices, causing receivables to be inaccurate. Your AR aging is inaccurate. You have a manual process of entering in revenue deferral transactions or using recurring entry transactions. Transactions are missed, not recognizing revenue when they should. You have transactions in which the receivable is recorded in one month but the revenue is recognized in a different month or months. Monthly journal entries do…

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Receivables too high

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AP and AR trial balances need to be manually reviewed to determine the net balance for entities that are both a customer and a vendor. Payments are made to vendors who are also customers and who actually owe the company money. You have to enter in transactions to clear the AR or AP balance and then enter additional transactions in the opposite module. Transactions could be entered incorrectly or missed, causing great difficulty in recovery of those transactions. Collection efforts are made for customers who do not really owe you money. You have difficulty managing customers who are national accounts….

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