Accounts Receivable
Accounts receivable are a legally enforceable claim for payment to a business by its customer/ clients for goods supplied and/or services rendered in execution of the customer’s order. These are generally in the form of invoices raised by the business and delivered to the customer for payment within an agreed time frame. Accounts receivable are shown in the balance sheet as asset. It is one of a series of accounting transactions dealing with the billing of a customer for goods and services that the customer has ordered.
Accounts receivable represents money
owed by entities to the firm on the sale of products or services on credit. In most business entities, accounts receivable is typically executed by generating an invoice and either mailing or electronically delivering it to the customer, who, in turn, must pay it within an established timeframe, called credit terms or payment terms.
The accounts receivable department uses the sales ledger, because a sales ledger normally records:
- The sales a business has made.
- The amount of money received for goods or services.
- The amount of money owed at the end of each month varies (debtors).
HoneycombERP® AR module manages the complete cycle with greater control and superior precision by offering many integrated billings and many advance features. By using HoneycombERP® AR module, organizations benefit a lot as they have clear picture of their receivables all the time.
Module Features
- Complete Customer Profile
- Classification of Customers (Local, Foreign, Brand Wise etc.)
- Integrated Billing by Sales Order or Delivery
- Multiple Currency Invoices with Exchange Rate
- Billing Control Dates and Secured Periods
- Different Delivery and Payment Terms and Conditions
- Management of Trade Discounts, Freight Charges, Commissions and Advances of Customer
- Leasing and Loan Sales Management
- Credit/Debit Memos
- Multiple Credit Receiving Methods
- Partial Credit Receiving against Single Invoice & Single Receiving against Multiple Invoices
- Account Receivable Statements Generation
- Comprehensive Customer Ledger
- Aged Receivables Statement
- Fiscal Calendar Period Rolls
- Sales, Excise and Other Taxation & Reporting
Complete Customer Profile
HoneycombERP® AR module maintains a detailed and comprehensive profile of all the customers. A description of a customer or set of customers that includes demographic, geographic, and psychographic characteristics, as well as buying patterns, creditworthiness, and purchase history. Customers can be categorized and prioritized for better management and control of customers.
Classification of Customers (Local, Foreign, Brand Wise etc.)
With HoneycombERP® AR; organizations have better control and visibility of their customers as every customer can be categorized into predefined categories. This makes tracking of records very easy later-on, alongside that separate ledgers can be generated for each classification of customer thus painting clear and precise picture of the finance. Important decision can be taken later on with the help of the information available in hand.
Integrated Billing by Sales Order or Delivery
Power of HoneycombERP® FAMS and HoneycombERP® AR modules lies in its strong and clear cut integration where financial impacts are generated automatically by the system upon posting of any record in the corresponding area. This saves a lot of data entry time alongside ensuring that financial impact of a certain activity will always be recorded in the correct financial head. Applying the same principle, whenever a Sales Order is booked / finalized, the customer invoice is automatically generated charging the correct associated COA. Upon approval / posting of invoice, ledgers are updated and subsidiaries are charged accordingly. Thus at any point in time, the management has the updated and current financial position of their organization and any particular customer as well.
Multiple Currency Invoices with Exchange Rate
HoneycombERP® AR brings greater flexibility by providing options to generate invoices in multiple currencies. HoneycombERP® FAMS is equipped to handle as many currencies the organization is dealing in business in. While generating invoices, same standard is followed and each foreign currency invoice’s value is automatically converted into equivalent local amounts by making use of exchange rates fed to the system. The system records both the foreign and its local equivalent thus making it easier for the managers to track any specific invoice / record if desired.
Billing Control Dates and Secured Periods
Timely and accurate billing is the lifeline of any business. HoneycombERP® AR module’s billing section is a powerful tool that enables a completely integrated application for superior billing controls. Managers can better regulate payments against invoices based on the information provided by the system as what invoices are overdue and other pertinent and important facts.
Different Delivery and Payment Terms and Conditions
Using HoneycombERP® FAMS, all standardized Incoterms (International Commercial Terms) like EXW, CPT, CIP, FOB etc. are handled and the system manages all the pertinent information and keeps all the necessary details. Additionally, payment terms like Cash in Advance, LC, and Drafts etc. are also managed in an unsophisticated manner.
Management of Trade Discounts, Freight Charges, Commissions and Advances of Customer
During any sales setup, some factors and situation always come along and are considered as course of business. Matters like Trade Discounts for example, are a commonality in any business, with HoneycombERP® AP module, situations like this and others as well, can be handled with ease as the system carefully monitors and integrates each sales transaction and acts accordingly to balance-out effect in finance. Not only Trade Discounts but Freight Charges, Commissions and Advances to Customers are also fully integrated and managed by the module in a comprehensive manner.
Leasing and Loan Sales Management
Although not highly frequent in its practice or recommended by the management of any organization; still loan and lease sales are a common practice in any sales business. Managing these transactions can be an unwieldy task; but with HoneycombERP® FAMS all the hassle is handled by the system exposing only the necessary and required information to the managers. Additionally; HoneycombERP® FAMS provides reports that make the life of any manager very easy, by allowing to generate any pertinent report any time by using the report widgets. Report widgets are capable of generating multiple reports by allowing multiple criterion selection. Instant reports mean real time picture and better visibility to the management, any time.
Credit/Debit Memos
A credit note or credit memorandum (memo) is a commercial document issued by a seller to a buyer. The seller usually issues a credit memo for the same or lower amount than the invoice, and then repays the money to the buyer or sets it off against a balance due from other transactions. A debit note or debit memorandum (memo) is a commercial document issued by a buyer to a seller as a means of formally requesting a credit note. A seller might also issue a debit note instead of an invoice in order to adjust upwards the amount of an invoice already issued (as if the invoice is recorded in wrong value). HoneycombERP® AR module houses both memos and their detailed reporting as well, enabling the managers to achieve superior business control.
Multiple Credit Receiving Methods
No financial solution can succeeded unless it offers ease of use and provides answers to situations occurring on frequent basis. HoneycombERP® FAMS does many steps ahead and not only provides the essentials, rather is equipped to manage complex and rare scenarios as well. Same is the case with options for payment receiving, using HoneycombERP® FAMS payments from any means for instance cheques, cash, wire transfer, online cash deposits etc. can be managed with ease.
Partial Credit Receiving against Single Invoice & Single Receiving against Multiple Invoices
Partial receiving against invoices is a common practice in the business world. Customers often clear payments in installment and managers generally find is embarrassing and cumbersome activity to maintain and manage multiple receiving against a single invoice. Well, with HoneycombERP® FAMS there is no hassle at all, as all these details and multiple transactions are handled by the system itself. The system keeps track of the invoice against which the payment is received, and at every point in time the manager can easily find out the status of a payment against that particular invoice. Not only this but the HoneycombERP® FAMS can also manage a single receiving against multiple invoice. That gives HoneycombERP® FAMS advantage of the extreme degree and thus is no doubt a complete and comprehensive system for any business.
Account Receivable Statements Generation
To any business, the information about the current receivables is always of essence as the life of business is dependent on receipt of payments from the market. Additionally, critical business decisions are dependent on the accuracy and timely availability of this information. With HoneycombERP® FAMS; receivable information is always a single click away, and the management can have the latest and accurate position of the business’s receivable.
Comprehensive Customer Ledger
HoneycombERP® FAMS records each and every transactions in a way that at any time valuable information can be generated in no time and with great ease and control. Detailed and comprehensive customer ledgers are an example of the power of HoneycombERP® FAMS, where every transaction with logging details is shown, alongside options to group & sort information in the way best suiting the custom needs of the organization. With HoneycombERP® FAMS, simply the managers have superior control over all the segments of the receivable.
Aged Receivables Statement
Accounts receivable aging is a critical management as well as an analytic tool that helps determine the financial health of a company’s customers, and therefore the health of their business. If an accounts receivable aging demonstrates that a company’s receivables are being collected much slower than normal, this is a warning sign that business may be slowing down or that the company is taking greater credit risk in its sales practices. With HoneycombERP® FAMS accounts receivable aging tool, it can be easily found out that certain customers are not good credit risks therefore helping managers or administration to make prudent decisions about whether or not to keep doing business with customers that are chronically late payers.
Fiscal Calendar Period Rolls
On fiscal year closing, balances are to be adjusted and certain amounts are carried forwarded to the next calendar year. With HoneycombERP® FAMS, all this is done automatically by the system as the system calculates the sums of the required amounts and properly places each value at its place. Thus a lot of man hours are saved and the management can focus on activities more fruitful to the business.
Sales, Excise and Other Taxation & Reporting
HoneycombERP® FAMS provides reports that make the life of any manager very easy, by allowing to generate appropriate reports any time by using the report widgets. Report widgets are capable of generating multiple reports and offer several criterion selection. Instant reports mean real time picture and better visibility to the management, any time. HoneycombERP® FAMS houses sales, Excise, Taxation and other reporting options.