Account Receivable Management System

1. Account Receivable Management System Iris Lee

2. Topic Account Receivable System Structure…5 Minutes Account Receivable System Flow……..60 Minutes A. Account Receivable Maintenance B. VAT Invoice Issuing Procedure C. AR Write Off Procedure D. Letter of Credit Management E. AR Month End Procedure Account Receivable Common Data…...10 Minutes

3. Account Receivable System Structure Sales Order Sales Return Incoming Payment Deposit Confirmation Delivery Note Balance of Payment Misc. AR Deposit AR Credit Memo Over Receipt Deposit to-offset Misc. to-offset Account Receivable Issue VAT Invoice Notes Receivable Incoming Payment LC Management Cash Transactions AR Revaluation AR Moth End

4. Common Data Collection Term Account Category VAT Invoice Book Maintenance

5. Collection Term Note Due Date: XXXX Shipment AR Date NR Due Date Note Base Due Date: 1.Delivery Date 2.Invoice Date 3.AR Date 4.Beginning of Next Month of Delivery date 5.Beginning of Next Month of Invoice Date 6. Beginning of Next Month of AR Date AR Base Date: 1.Delivery Date 2.Invoice Date 4.Beginning of Next Month of Delivery date 5.Beginning of Next Month of Invoice Date

6. AR Date Calculation Example: Collection Term is OA30 days , NR Due day is 20 days AR Base Date: Beginning of Next Month of Delivery date Note Base due Date: AR Date Note Due Date: XXXX 3/20 Delivery 4/1 AR Base date 5/1 AR date 5/21 Note Due Date 20Days 1st of next month 30days 5/1 Note Base due Date

7. Accounts Category • Account Receivable • Deposit • Delivery AR • Balance AR • Misc. AR • To-offset Account • Allowance : Be generated from sales return. • Accounts to-offset : Manually entry. • Advance Receive: Be generated by Deposit confirmation. • Suspend Credit : Be generated by Cash Transaction. • Discount: Manually entry. Must mapping to original invoice. • Non-AR VAT Invoice: Only Issue Invoice.

8. VAT Invoice book Setup VAT Invoice Prefix Setup VAT Invoice Book Setup • Uniform VAT Invoice Type • To define invoice books by company. • Uniform VAT Invoice Book • Each Company may have many invoice books • Issue Method of VAT Invoice • 1.Automatically be issued • 2.Manually be issued

9. Procedure of Account Receivable Maintain Delivery Noteaxmt620 Sales/Return Noteaxmt700 Maintain Invoice axmt500 Maintain Accounts Receivable axrt300 Auto Generate AR axrp310 Auto Generate AR Summary axrp330 Trsf Sls/Ret Note to Allowanceaxrp304 Maintain AR axrt300 Procedure of VAT Invoice Issuing

10. AR Generating Method one to one one to one Delivery Note AR VAT Invoice Delivery Note AR VAT Invoice Summary Summary AR Delivery Note

11. AR Exchange Rate Exchange Rate Parameter Daily rate Monthly Rate Exchange Rate Setup Rate Option: Bank Buying Bank Sell Bank Avg. Rate Customs Buy Customs Sell AR parameters: Exchange Rate Basefor Domestic Sales Exchange Rate Base for Export Sales Exchange Base Date 1.Export: Customs Date 2.Domestic Sales: AR date

12. Default Setting in CoA of AR Entry Sheet Default Setting in Chart of Account of AR [By CoA Classification of AR] CoA of AR in Header Generate Entry Sheet Maintain Entry Sheet

13. Procedure of VAT Invoice Issuing Maintain Accounts Receivable axrt300 Maintain Accounts Receivable axrt300 Batch Issue VAT Invoiceaxrp320 VAT Invoice Summarized Issuing axrp340 Maintain VAT Invoiceaxrt310 Print Invoice axrr300

14. Invoice Issuing Method 1. Issue VAT Invoice in AR Maintenance(axrt300) 2. Batch Issuing VAT Invoice(axrp320) 3. Summarized Issuing VAT Invoice(axrp340) 4. Issue VAT Invoice after Delivery(axmt620)

15. Procedure of Write off Incoming Payment Receive Notes Receivableanmt200 Receive Cash Transaction anmt302 Print Report of Incom/Exp of Cash In Bank anmr320 Print N/R Collection Detail anmr221 AR Maintain Incoming Payment axrt400 Transfer A/R Entry Sheet to G/L Voucher axrp590

16. Feature of Write off in AR • Write off by Multiple Currencies • Multiple Credit CoA. & Debit CoA. • Auto Write off • Auto Generate Exchange Gain /Loss • Auto Adjust unbalance Amount

17. Mode in Write off AR (一) Definition of Temporary Receipt : To generate voucher for cash transaction/NR while cash transaction/NR confirmed. Cash Transaction Entry Sheet D: Cash C: Temporary Receipt Write off Receive NR Entry Sheet D: NR C: Temporary Receipt Entry Sheet D: Temporary Receipt C: AR

18. Mode in Write off AR(二) Non Temporary Receipt : To generate voucher for cash transaction while Write off AR. Entry Sheet D: Cash C: AR Cash Transactions Write off Entry Sheet D: NR C: AR NR

19. Write off in AR Debit 1.NR 2.TT 3.AR To-Offset 4.Misc. 5.Bad Debt 6.Discount 7.Exchange Loss 8.Cash 9.AP Credit 1.AR 2.Over-Rec. 4.Other AR 7.Exchange Gain 9.Credit of AP

20. Letter of Credit Management Maintain Sales Order Axmt410 Modify Sales L/Caxrt201 Maintain Sales L/C axrt200 Maintain Accounts Receivable axrt300 Procedure of Shipping Sales L/C Negotiation axrt210 Cash Transaction anmt302 Update Negotiating Date Maintain Incoming Payment axrt400

21. Feature of LC management • Double confirm: Be confirmed by Logistics and Accounting • Keep detail information Keep LC information / Negotiation Information • Status Tracking: Provide LC Checking report • Credit Control: Be calculated in Credit Control • Cash Forecast Be included in Conglomerate Fund Planning

22. AR Revaluation Purpose: To revaluate AR balance during month end procedure Method 1: Realized exchange gain and loss Change AR Exchange Rate AXR Parameter SettingAxrs010 Revaluation Rate Revaluation Entry Sheet For Exchange Gain/Loss Method 2: Unrealized exchange gain and loss A/R Account Revaluation ReportAxrr380 Monthly Bank Buy Exch. Rate Accrued Voucher for Exch. Gain/Loss Reverse Exch. Gain/Loss On Next Month

23. Procedure of AR Month End Un-invoiced Delivery Detail axmr630 N Maintain AR Correct Y Unconfirmed Document List aoou702 A/R Account Stated vs. GL Checking Report axrr351 Print A/R Account Statedaxrr151 Sales Revenue Details axrr378 N Adjust Org. Transaction Correct Y A

24. A Update Statistics Table aglp130 Print Account Period Reportaglr200 Customer A/R Account Statedaxrr500 Check CoA of AR and GL Query Period Account Balance aglq101 Print Subsidiary Ledger aglr906 AR Closing axrp401