Receivable Management Essay Example for Free

Receivable Management EssayThe company testament come to know about the existing flaws in the system. The recommendations would help the company to overcome the same. It will too help the company to know which portal is generating more revenue, which position and many early(a) things which generate catch major part of the revenue. pic Management Of Accounts Receivable Management of receivables is a process under which decisions to maximize returns on the investment blocked in them argon taken. Thus, the main objective of management receivable is to maximize the returns on investment in receivables to minimize risk of bad debts etc. Because investment in receivables affects liquidity and profitability, it is, therefore, operative to maintain proper level of receivables. Accounts receivable represent sales that have not yet been self-collected as cash. It explains that merchandise or services in exchange for a customers promise to pay at a certain time in the future. Account s receivables of a firm are created on both the incline of the productive system. On one side of this system, the firm may make advance payments to the suppliers of the raw secular to ensure timely supply, when the supplier holds the monopolistic position.On the other side of the productive system, accounts receivable are created by a firm when it sells its output on doctrine. These are termed as sundry debtors. Sundry Debtors mould nearly 60% of the Accounts Receivables. Four Aspects Of Management Of Sundry Debtors 1. Credit Policy needs to be determined. This involves a trade off between the profit on additional sales that arise due to credit being extended on the one hand and the cost of carrying those debtors and the bad debts losses on the other hand.