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Receivables Management
Receivables Management
Sabrina Tamang
Saman Rijal
Samir Bariya
Samrat Thapa
Sandip Poudel
Significance of Receivable Management
Credit terms
Collection policy
Character
Capacity
Capital
Collateral
Condition
Creditperiod
Cash discount
Cash discount period
Correspondence
Telephone calls
Personal Visits
Legal action etc.
Two widely used important tools :
1. Days Sales Outstanding
2. Aging schedule
DSO = Average receivable * Days in a year
Net credit Sales
= Days in a year
Receivable turnover
= Receivables
Average daily credit sales
Also,
DSO = % of discounted customer * discount period + % of non-discounted customers paid in time *
credit period + % of non-discounted customer paid in late time * total period with late
time
Age of Kantipur television Image television
Example Account
(Days) Value of account % of total value Value of account % of total value
31-45 0 0 300,000 15
46-60 0 0 200,000 10
Over 60 0 0 100,000 5