FIN-AR

1、BestPracticeFinancialProcesses:AccountsReceivable2PwC175cAccountReceivable-BestPracticeObjectivesAccountsReceivableObjectivesOrganisationPeopleProcessesControlsMeasuresInformationSystemsToensurecustomerpaymentsarereceivedefficientlyandeffectivelyforgoods/servicesdelivered,withintheagreedtermsandconditionsTomanagecreditriskefficientlywithoutcreatingunnecessarydelaysinthesalescycleTomaintainacompleteandaccuratestatementofoutstandingdebtorsToprovidecompleteforecastinformationtoassistthemanagem。

2、entofshort-termcashrequirementsCentralisedprocessingEconomiesofscaleCustomerfocusEstablishcreditlevelsIssuesalesorderIssueinvoiceMonitorcreditCollectcashProceduresmanualAuthorisationValidation/matchingCreditcontrolCostperinvoiceCreditnotespercentageCostperpaymentreceivedDaysdebtoutstandingIntegratedwithsalessystemAutomaticmatchingElectronicreceiptsCustomerrelationsLegalframeworkawarenessCreditmanagement3PwC175cAccountsReceivable-BestPracticeFeaturesProcessFeaturesFormalcre。

3、ditchecksappliedtoallnewcustomerswithin24hoursusingcreditbureauMonitorcreditstatus/termsonregularbasisCustomeraccountmanagersprovidedwithuptodatecreditstatusTreasurypolicysetonlateandpromptpaymentsAuthoritylevelsclearlydefinedCreditpoliciesdefinedandagreedTermsandconditionsagreedwithcustomersConsolidatedperiodicinvoicingforhighfrequencyshipmentsBankremittancenoticesissuedwithsalesinvoicestofacilitatereconciliationSelfbillinginvoicesbyhighvolumecustomersConsideroutsourcingregularinvoice。

4、/paymentegutilitiesRegularreviewofinvoicequeriesandcreditnotesReconciliationofARbalancestoGLcontrolaccountsonaregularbasisCreditinsurancearrangementsevaluatedperiodicallyCustomeraccountmanagersresponsibleforsalesandcashcollectionConstantmonitoringofdebtordays,dailycollection,ageingofdebtCustomercontactrecordsmaintainedOutsourcecashcollectionwhereappropriateDetermineandreportoncredittargetsMonitoroverduedebtsandtakeactionwithinagreedpolicyEstablishcreditlevelsIssuesalesorderIssueinvoiceM。

5、onitorcredit/collectcashSalesorderspreparedusingpricingdatabasewithpricingprofilesforproductsandcustomersNoorderprocessedwithoutvalidcustomerPOreferenceDeliverynoteactsasinvoiceforlow-frequencyshippings4PwC175cAccountsReceivable-BestPracticeFeaturesEstablishcreditlevelsIssuesalesorderIssueinvoiceMonitorcredit/collectcashSystemFeaturesConsolidatedcreditpositionforgroupofcustomersSystemprovideson-linecustomerpaymenthistoryandtermsUseofworkflowsoftwaretomonitorprocessandhelpresolvequeriesSta。

6、ndardcreditcontrolreportsCommonSOPandARcustomerdatabaseInvoicesautomaticallygeneratedfromSOPandshipmentdataSelfbillinginvoicesautomaticallymatchedtocustomerordersMulticurrencyinvoicesAutomaticcommitmentandaccrualsAutomaticreconciliationfacilitiesbetweenintegratedSOPARandGLsystemsSOPlinkedtodebtorsledgertoensurecustomercreditlimitsnotexceededSalesdocumentssentviaEDIforallmajorcustomersIntegratedorder&billingsystemsavailableonline&hardcopyPaymentsreceivedelectronicallywherepossibleAutom。

7、aticmatchingofpaymentstoinvoicesOn-linediaryfacilitytomonitorcallsAutomaticflaggingandreportingofhighriskaccountsAutomaticdunninglettersissuedwithinagreedtradingtermsIntegratedsystemstofacilitatecustomerqueryhandlingForecastcashreceiptsavailablefortreasurypurposes5PwC175cAccountsReceivable-TrendsFromToSeparateARmodulePaymentbychequeComplex/variabletradingtermsManualmatchingPerformedbyFinancedepartmentIntegratedsystemsElectronicpaymentCommontradingtermsforallcustomersAutomaticmatchi。

8、ngSharedoroutsourcedservices6PwC175cAccountsReceivable-Measures/CostDrivers90percentileMedian10percentileNumberofcustomerpaymentreceivedperaccountsreceivableFTEperannum40,3005,500700orlessAccountsreceivablecostpersalesinvoiceprocessed10percentileMedian90percentile£1£3£18Median1day90percentile4days10percentile1dayDaystoprocessinvoice/creditnote(ie,timebetweenreceiptofinvoice/creditnoteandentryintotheaccountingsystem)CostdriversNumberofARreceiptsLevelofmultiplereceiptsUseofdirectdebiting/stand。

9、ingordersUseofelectricfundstransferLevelofcreditriskassociatedwithcustomerbaseVarietyinpaymenttermsDegreeofforeigncurrencyreceiptsLevelofcreditnotes7PwC175cBilling-Measures/CostDrivers90percentileMedian10percentileNumberofsalesinvoicesgeneratedperbillingFTEperannum90,00011,1001,600Billingcostpersalesinvoiceandcreditnoteprocessed10percentileMedian90percentile£1£2£22Median2days90percentile15days10percentile1dayDaysfromdespatchofgoodstopreparationofsalesinvoiceCostdriversNumberofinvoicesNumb。

10、erofcustomersUseofEDIComplexityofservice/goodssuppliedVarietyintermsandconditionsComplexityofdiscountsDegreeofforeigncurrencyinvoicingNumberofcomplaintsAccuracy/levelofcreditnotes8PwC175cAccountsReceivable-Level0ContextDiagramAccountsReceivableGLPostingsGeneralLedgerCustomersBankManualInvoicesBillingSystemStandingDataCustomerServicesSystem9PwC175cAccountsReceivable-Level1OverviewCustomerStandingData,Bills&CreditNotesARStaffARsystemBillingsystemCustomerdetailsARdataimportproceduresInter。