Archive / 1.17 Account Receivables

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Results from confirming receivables

So you performed receivables confirmation procedure at period end and a receivable balance for say customer A was not confirmed. A fact it was not confirmed and you didn’t receive a reply for your request in itself should indicate that there’s a possible impairment indication. More so, as the days pass, it’s also not paid.  […]

Payment terms with customers

A key thing to remember with payment terms to your customers is that don’t ask less than what you yourself are given. If your suppliers ask for 10 days to pay up, so should you. Or at least consider it before opting for longer payment terms with your customers.  (more…)

Bonuses paid to customers

Bonuses paid to customers are in some industries more common than in others. For instance where it’s often seen is with wholesale merchants and manufacturers. They drive on quantities since it gives them efficiency when we talk about manufacturing and better deals when we talk about companies who buy items in bulk to wholesale them […]

Factored receivables with nonrecourse

We have now discussed factoring agreements with recourse however what if the risks prevailing are indeed transferred? If you’ve signed on an agreement where you’re in fact selling the receivables and you’re no longer and will not be in future responsible or taking risks in relation to the collection of the invoices, you’ve in fact […]

Factored receivables with recourse

To understand your factoring agreement and its conditions means you understand the risks prevailing and the implications the agreement in force has on your company and its financial statements as they are.  (more…)