The paper "Appraisal and Analysis of the Accounts Receivable Process - Woodlands Company " is a perfect example of a finance and accounting report. A process mapping generally outlines and visually describes the flow of activities in a given department or organization. It details the steps followed towards the completion of a given task. This paper describes the Accounts receivable process of Woodlands Company which is in charge of assembling motor spare parts. The company receives various simple spares, assembles them, and sells them to various consumers who need such spares for completion of motor vehicle assembly and sales.
The company has various departments that work towards the completion of the activities in the company. The process described in this paper focuses on the planning and flow of activities within the Accounting and Finance department (Accounts receivable). The company has put in place a robust accounting department that is composed of various staff performing different tasks. One of the most crucial areas in this department is the accounts receivable section. This section is in charge of following up on sales made on credit and ensuring that the company receives such amount due in the required time period.
Therefore, the staffs under the Accounts receivable section follow the outlined process to ensure that they have proper planning and execution of activities for easy collection of the cash outstanding from debtors (Lockamy III & McCormack 2004). The first stage of this process regards the receipt of the invoice by the accountants. The invoice is normally received from the sections in charge of Invoice Preparation. This includes the determination of the items sold and setting up of the prices.
Therefore, the invoice received at this stage includes the total receivable amount, the name, and other details of the customer including the contact materials. This information enables the Accounts receivable accountant to determine the payment made and the amount due on the invoice. After ascertaining the amount due, the account then enters the 30days debtors’ period on the calendar. This is the period within which the debtor needs to pay the amount due on the invoice. Debt collection activities progress from this date including contacting the debtor to remind them of the amount due on their invoice.
Therefore, payment is expected during the 30 day period.
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