Types of accounts receivable

Accounts receivable consists of several types are:

An accounts receivable businesses is the amount of credit purchases from customers. Receivables arising from the sale of goods or services. Accounts receivable are usually expected to be collectible in 30 to 60 days. In General, this type of accounts receivable is the largest company-owned accounts receivable.

The accounts receivable accounts receivable are the efforts connected with the activity of the normal operation of a business, namely the credit sales of goods or services to customers.

Money order Charged (notes receivable)

Wesel Charged formal letter was published as a form of measurement of debt. Wesel charged usually have time charged between 60 – 90 days or longer and require that the debtor to pay interest. Wesel charged and accounts receivable of the business which is caused due to a sales transaction is commonly referred to by the trade receivables (trade account). 

Accounts receivable accounts receivable is money orders issued by formal written promise to pay a specific amount at a specified date.

Accounts receivable others (other receivable)

Other receivables include receivables other than trade is. Example: interest receivable, accounts receivable, cash advance salary employees, and tax refund. In general it is not derived from the company's operational activities. Therefore, this type of accounts receivable are classified and reported on the section separately in the balance sheet.

An accounts receivable other accounts receivable are any that arise from a transaction that is not directly related to the activity of a normal opersi a business.

Management Of Accounts Receivable

Accounts receivable is an asset which is quite material. Therefore the necessary management management of receivable which effectively and efficiently so that the amount of funds invested in accounts receivable in accordance with the level of ability of the company so as not to disturb the flow of cash.

Accounts receivable management policies include the taking of decisions as follows:

Standard credit

Credit standard is a minimum quality of the creditworthiness of a credit applicant can be accepted by the company. The existence of such standards, companies can increase sales through credit sales but does not pose a risk of accounts receivable is not collectible.
The company must determine the appropriate credit standards, the greater the benefits to be gained for the company than the costs the company will be issued by the existence of such standards.

Credit Terms

A condition of credit specify the existence of a period in which the credit is given and a discounted cash (if any) for payments early. Factors that affect credit terms are: a. the nature of the economic development of the product, b. Conditions of the seller, the buyer's Conditions, c. d., e. credit Period Pieces for cash and d. risk-free interest rate (bank rate).

Collection of accounts receivable and credit Policy

Collection of accounts receivable and credit policy includes some decisions, namely: a. quality of the amount received, credit Period, b. c. Discounted cash, d. specific requirements, and d. the level of expenses for the collection of accounts receivable.

The large number of receivables that are not collectible will make billing costs increased. However, the effort of collecting accounts receivable is also not advisable too aggressive, as it can reduce the sales and profits of the company in the future because customers will switch to another company, in this case a competitor.

Conclusion

Generally, companies prefer sales in cash, because by doing so the company will be able to save a number of costs and can prevent themselves from a number of risks that are very likely to arise if the sale is carried out credit. However, to increase sales, in addition to conducting sales in cash, the company also serves the purchasing credit to customers.

Credit sales will then give rise to trade accounts receivable is emerging as one of the accounts in the balance sheet of the company, in particular in the Group of current assets due to normal trade receivables short-timed.

Trade receivables is an amount of money that is transferred ownership to a company by customers who have purchased goods or services in credit.