财务管理最佳实践之应收管理(英文版)(ppt 20页).pptx

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1、1PwC175cBest Practice Financial Processes: Accounts Receivable2PwC175cAccount Receivable - Best Practice ObjectivesAccounts Receivable ObjectivesOrganisationPeopleProcessesControlsMeasuresInformation SystemsTo ensure customer payments are received efficiently and effectively for goods/services deliv

2、ered, within the agreed terms and conditionsTo manage credit risk efficiently without creating unnecessary delays in the sales cycleTo maintain a complete and accurate statement of outstanding debtorsTo provide complete forecast information to assist the management of short-term cash requirementsCen

3、tralised processingEconomies of scaleCustomer focusEstablish credit levelsIssue sales orderIssue invoiceMonitor creditCollect cashProcedures manualAuthorisationValidation/matchingCredit controlCost per invoiceCredit notes percentageCost per payment receivedDays debt outstandingIntegrated with sales

4、systemAutomatic matchingElectronic receiptsCustomer relationsLegal framework awarenessCredit management3PwC175cAccounts Receivable - Best Practice FeaturesProcess FeaturesFormal credit checks applied to all new customers within 24 hours using credit bureau Monitor credit status/terms on regular basi

5、s Customer account managers provided with up to date credit statusTreasury policy set on late and prompt paymentsAuthority levels clearly definedCredit policies defined and agreedTerms and conditions agreed with customersConsolidated periodic invoicing for high frequency shipmentsBank remittance not

6、ices issued with sales invoices to facilitate reconciliationSelf billing invoices by high volume customersConsider outsourcing regular invoice/payment eg utilitiesRegular review of invoice queries and credit notesReconciliation of AR balances to GL control accounts on a regular basisCredit insurance

7、 arrangements evaluated periodically Customer account managers responsible for sales and cash collectionConstant monitoring of debtor days, daily collection, ageing of debtCustomer contact records maintainedOutsource cash collection where appropriateDetermine and report on credit targetsMonitor over

8、due debts and take action within agreed policyEstablish credit levelsIssue sales orderIssue invoiceMonitor credit/ collect cashSales orders prepared using pricing database with pricing profiles for products and customers No order processed without valid customer PO referenceDelivery note acts as inv

9、oice for low-frequency shippings4PwC175cAccounts Receivable - Best Practice FeaturesEstablish credit levelsIssue sales orderIssue invoiceMonitor credit/ collect cashSystem FeaturesConsolidated credit position for group of customersSystem provides on-line customer payment history and termsUse of work

10、flow software to monitor process and help resolve queriesStandard credit control reportsCommon SOP and AR customer databaseInvoices automatically generated from SOP and shipment dataSelf billing invoices automatically matched to customer ordersMulti currency invoicesAutomatic commitment and accruals

11、Automatic reconciliation facilities between integrated SOP AR and GL systemsSOP linked to debtors ledger to ensure customer credit limits not exceededSales documents sent via EDI for all major customersIntegrated order & billing systems available on line & hard copyPayments received electronically w

12、here possibleAutomatic matching of payments to invoicesOn-line diary facility to monitor callsAutomatic flagging and reporting of high risk accountsAutomatic dunning letters issued within agreed trading termsIntegrated systems to facilitate customer query handlingForecast cash receipts available for

13、 treasury purposes5PwC175cAccounts Receivable - TrendsFromToSeparate AR modulePayment by chequeComplex/variable trading termsManual matchingPerformed by Finance departmentIntegrated systemsElectronic paymentCommon trading terms for all customersAutomatic matchingShared or outsourced services6PwC175c

14、Accounts Receivable - Measures/Cost Drivers90 percentileMedian10 percentileNumber of customer payment received per accounts receivable FTE per annum40,3005,500700 or lessAccounts receivable cost per sales invoice processed10 percentileMedian90 percentile1318Median1 day90 percentile4 days10 percentil

15、e1 dayDays to process invoice/credit note (ie, time between receipt of invoice/credit note and entry into the accounting system)Cost driversNumber of AR receiptsLevel of multiple receiptsUse of direct debiting/standing ordersUse of electric funds transferLevel of credit risk associated with customer

16、 baseVariety in payment termsDegree of foreign currency receiptsLevel of credit notes7PwC175cBilling - Measures/Cost Drivers90 percentileMedian10 percentileNumber of sales invoices generated per billing FTE per annum 90,00011,1001,600Billing cost per sales invoice and credit note processed10 percent

17、ileMedian90 percentile1222Median2 days90 percentile15 days10 percentile1 dayDays from despatch of goods to preparation of sales invoiceCost driversNumber of invoicesNumber of customersUse of EDIComplexity of service/goods suppliedVariety in terms and conditionsComplexity of discountsDegree of foreig

18、n currency invoicingNumber of complaintsAccuracy/level of credit notes8PwC175cAccounts Receivable - Level 0 Context DiagramAccountsReceivableBillsAdhoc invoices & standing dataReminders &StatementsGLPostingsGeneral LedgerCustomersBankManual InvoicesBilling SystemStandingDataPayments(cash, cheque)Dir

19、ect DebitInstructionsStatementsPayment details(Bank Giro credits)Customer Services SystemAlso electronic AP/AR data from bank for auto cash management9PwC175cAccounts Receivable - Level 1 OverviewCustomerStandingData , Bills& Credit NotesAR StaffAR systemBilling systemCustomerdetailsAR data import p

20、roceduresInterface RulesAR StaffBilling systemAR systemCustomer DataLogged on ARSystemInvoice/credit noteentry rules,Bills and credit notes loading proceduresAR StaffAR SystemBills & credit notesManual invoice request Customermaintenanceprocedures, Customer relationshiprulesImport standing data, bil

21、ls & credit notesAR 1.1Maintain customer dataAR 1.2Process bills, invoices & credit notesAR 1.3DatavalidationreportCustomer reportManage receivablesAR 1.4Process receipts and direct debitsAR 1.5Process period endAR 1.7Credit control policies and procedures,Call logging procedures,Provision creation

22、rules,Legal proceedings rulesAR staffAR systemCredit controlOpen invoiceson AR systemPrint invoices despatchedGL updatesOutstandingdebtorsCheque and receipts processing rules,Automatic allocation rules,Manual allocation rules,On account payment rulesCash/cheque/bank receiptsList of DD customers amou

23、nts dueAR staffAR systemBank statementTransaction dataReview procedures,Archiving rules,Period data proceduresAR staffAR systemPayment on accountlogged on AR systemMatched DDreceipts logged on AR systemRequest to bankProcess amendmentsAR 1.6New periodopenedon AR systemPeriod endGL postingsMatchedrec

24、eiptsarchivedPeriod reportsproducedAmendment ofvalidation rules,Amendment inputproceduresAdjustmentsAmendmentsGL updatesAudit reportDebtor reportDunningletter/statementAmendment request, notify departmentProvision journals10PwC175cAccounts Receivable Notes Maintain customer dataBest Practice Feature

25、sSend bill to one address only. Where a customer is provided with goods or services at a number of locations, the consolidation in the billing process not only reduces the number of bills to be verified or created but also decreases the potential need to reconcile a number of receivables on individu

26、al accounts. Centralise the customer set-up process in order to ensure consistency.Internal control requirementsIn order to minimise the risk of duplication of the data and the unauthorised set-up of customers, the process should be centrally controlled and operated. Before any customer is deleted f

27、rom the system, evidence should be produced that the customer has been inactive for the appropriate period of time and no outstanding balances are present. Approval for deletion is obtained by management authority signature.The changes to customers report is regularly checked and monitored.System no

28、tification of duplicate business and birth registration numbers. 11PwC175cAccounts Receivable Notes Maintain customer dataCost DriversNumber of customersNumber of new customersNumber of customer changesNumber of required customer standing data fields Possibility of sharing standing databaseOverlap b

29、etween databasesSearch criteria and standardisation to avoid duplication/redundancyKey Performance IndicatorsNumber of changes and additions carried out in a year per FTENumber of customers in op. database without transactions for 1 yearPercentage of changes and additions of total customer base12PwC

30、175cAccounts Receivable Notes Manage ReceivablesBest Practice FeaturesAged debit balances should be reviewed by management on a regular basis and explanations sought as to why debts have failed to be recovered.Overdue debit balances occur as a result a number of factors of sub-optimal performances w

31、ithin the sales department or within the credit control process or AR - info not recorded from bank quickly enough and therefore not processed quickly enough or timing of invoice issue. The root causes need to be addressed and rectified by altering the creditability status of the customer.Automatic

32、flagging and reporting of high risk accounts.Materiality and time limits.Internal control requirementsIt is essential that debit balances are reviewed regularly and matched with payments promptly in order to avoid the risk of fraud and minimise the chances of bad debt.Computer diary of actions taken

33、. Stops placed on overdue customers.Aged debtor report sent to legal department and functional managers.13PwC175cAccounts Receivable Notes Manage receivables (Cont)Cost DriversNumber of overdue open items.Number of steps in the dunning procedure.Quality and timing of the matching process of receipts

34、.Availability of dunning enforcement measures.Tolerance criteria.Payment terms and conditions policy.Key Performance indicatorsDays outstanding as a percentage of average payment term.Value of overdue invoices as a percentage of outstanding balances.Bad Debt Provision as a percentage of outstanding

35、balances.Process cost/customer payment received.Number of dunning letters as % of total invoices.Write off value as % of (sundry) sales revenue.14PwC175cAccounts Receivable Notes Process receipts and direct debitsBest practice featuresUse of an electronic interface between bank, cashiers and AR trea

36、suryAutomatic matching of receipts by value and invoice number Internal control requirementsInterface control total with bank and cashiers, dailyRegular supervisory review of open and unmatched itemsDocumentation of all overdue open items and unmatched receipts15PwC175cAccounts Receivable Notes Proc

37、ess receipts and direct debitsCost DriversNo. of Receipts for more than one transactionPercentage of downpaymentsQuality of payment informationNumber of unmatched paymentsNumber of foreign currency receipts and exchange rate differencesTolerance payment differencesNumber of criteria for automatic ma

38、tchingKey Performance IndicatorsMonthly and cumulative tolerance difference amountsPercentage of receipts cleared automatically in monthNumber of manually matched receipts per FTE Number of unmatched receipts older than 1 month16PwC175cAccounts Receivable Notes Process amendmentsBest Practice Featur

39、esSingle contact point for all queries. Although the query processing can be distributed there are obvious inefficiencies in directing enquiries to a number of contact points.Have access to sufficient data to be able to handle the majority of queries on-line. In this context, the use of image proces

40、sing allows invoices to be called up on screen quickly and, if necessary, automatically copied to the enquirer through the medium of autofax.Internal control requirementsIn order to operate an effective helpdesk, staff will require to have access to most parts of the accounts receivable system. This

41、 should be on a read only basis in order to minimise the potential for fraud taking place.Targets set for time to answer queries.17PwC175cAccounts Receivable Notes Process amendmentsCost DriversNumber and variety of queries received.Availability and flexibility of standard screens.Complexity of data

42、base for tailor-made queries.Response times of enquiry systems.User-friendliness of enquiry systems.Key Performance IndicatorsAverage time taken to process queries.Percentage of queries answered within targeted time.18PwC175cAccounts Receivable Notes Process period endBest Practice FeaturesAutomatic

43、 process requiring minimum or no manual intervention. This is a standard feature of modern Accounts Receivable packages and the only possible problem area could be with the nature of the interface with the general ledger package.Internal control requirementsThe basic requirement is to ensure that th

44、e data transmitted to the general ledger is complete and on time.There is a requirement to ensure that the information recorded in the general ledger agrees with the output from accounts receivable.A reconciliation should be carried out between debtor balances on GL compared with AR. Check VAT exception report to pick up any late VAT postings.Cost DriversVolume of monthly period end reports.Quality of day to day controls.Key Performance IndicatorsPercentage of period end closures within target.Average number of days to produce monthly information.