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Accounts Receivable

Overview

 

Kingdee K/3 Accounts Receivable is intended for transaction managers in manufacture enterprises, trading companies, administrative units, and public institutions. This module covers the entire A/R workflow from contracts for accounts receivable, Sales Invoices, collection, refund, Bills Receivable, and accounts receivable settlement. It also supports integrated transaction management such as auto voucher generation, bad debt management, credit management, A/R due and overdue alarm, and auto reconciliation with the general ledger and business partners. In addition, it provides you with management reports of Aging Analysis, Collection Analysis, and Sales Analysis. It helps enterprises, on the one hand, enhance the reconciliation with business partners and shorten the fund occupation cycle of accounts receivable and speed up the corporate fund turnover. On the other hand, it helps enterprises expand the market by using customer credit system and achieve the quickest business expansion with the least loss due to bad debts. The module can work with General Ledger, A/P, Report, and Cash Management to work as a complete finance solution, or work with Sales Management, Purchase Management, Inventory Management, and Inventory Accounting to work as a complete supply chain solution.

Business Workflow

 

 

 

Functions

 

1.Contract management

The module supports functionalities such as contract maintenance, contract change, contract execution control, and associated query of documents regarding one specific contract. It can manage and control the whole process throughout contract execution from placing order, delivery, billing to payment collection. Meanwhile, each transaction during this end-to-end process can be tracked by querying some system built-in reports.

 

2.Settlement management

The module can receive invoices from Sales Management module. It also allows you to add invoices and Other Receivables directly. These invoices and Other Receivables are used as references for enterprises to identify creditor's rights. Collection settlement can also be processed via Advance Collection Notes and Collection Notes.

There're seven settlement types supported in the system including collection settlement, advance from customer offset A/R, A/R transfer, etc. A variety of settlement methods can satisfy the different business needs of collection by product details, contract or order. The module also supports multiple write-off modes including manual write-off, auto write-off, and auto write-off upon approval. It enables enterprises choose the best suitable settlement solution according to the highest priority and maximum profitability principle of its operation so that the required analysis in reports can be presented.

3.Bills management

The module provides comprehensive handling and tracking of commercial bills. Bills Receivable can generate Collection Notes or Advance Collection Notes automatically upon approval for later settlement. The module also supports further business handling of Bills Receivable, helping enterprises monitor their endorsement, discount, collection, and cancellation.

4.Voucher management

The module supports generation of vouchers in template or non-template mode. User can select a mode according to his preference. When a voucher is saved, the module checks the currency, total amount and fiscal period in the transaction accounts of vouchers and gives detailed prompts of inconsistency in real time to help minimizing operation errors.

5.Credit management

The module applies different levels of credit control in terms of credit period, credit limit and credit quantity stated in the contract and invoice to five credit objects including customers, departments and business representatives, etc. The control includes cancelling the transaction, giving a warning, or applies no control at all. In doing so, enterprises can adopt flexible credit management solutions based on their own business requirements so as to obtain the highest sales growth at the lowest credit management risks.

6.Bad debts management

The module supports the account handling of provision for bad debts, bad debts confirmation and bad debt recovery. It supports three types of provision for bad debts under the allowance method: percentage of sales, aging analysis, and percentage of A/R, to facilitate the flexibility of business operation and help enterprises strengthen A/R management.

7.Reconciliation

The module supports the reconciliation between A/R and General Ledger. Two reconciliation modes are supported: reconciliation by total amount and reconciliation by transaction accounts. With this function, an enterprise can reconcile its business information and financial information at any time to detect and eliminate the inconsistency between finance and business.

 

8.Foreign currency accounting and EoP foreign exchange adjustment

The module supports the handling of A/R and collection transactions in multiple foreign currencies. It automatically calculates the exchange profits/losses of the accounts receivable accounted in foreign currencies at the end of a fiscal period and generates the exchange profit/loss transfer voucher and Foreign Exchange Adjustment. The exchange profit/loss transfer voucher is forwarded to General Ledger. The Foreign Exchange Adjustment can be queried with easy access to history currency changes and the exchange profits/losses of each period. This module satisfies the business requirements of foreign currency accounting and EoP foreign exchange adjustment.

9.Rich report data

The module provides various reports: A/R Details and A/R Summary based on the time sequence of transactions; Aging Analysis, Transaction Reconciliation, A/R Due and Overdue Report, and Monthly Settlement Statement based on the unsettled document balance; various analysis reports including Turnover Analysis, Collection Analysis, and Trend Analysis. These reports enable enterprises to quickly get to the amount incurred and balance of A/R and provide rich basic data for enterprises to personalize their management reports.