Last post we gave a general overview of accounts receivable processes.
Continuing on this, what will your client do to further its business?
They will resort to marketing by various methods, to affect sales of their products and services. The accounts receivable function starts from the point a customer agrees to purchase the products / services. This can be through multiple channels like retail sale, whole sale, business to business, credit sales etc.
Let us look at the ideal scenario of a credit sale. Let us assume that the customer is a manufacturing unit and is buying raw materials from your client. So, this customer will (after evaluating products) place an order for purchase of the stuff your client is selling. This order can be received by your client by various means, verbal, written, through fax, email or other means. So the process starts with recording this order. Verbal orders must preferably be confirmed in writing as well.
More to follow in the next post.
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