Informative Speech Outline About Music Essays

1284 Words Aug 5th, 2013 6 Pages
Accounts Receivable – Office Products Depot

The interview with Colin Smith, from Office Products Depot, meant I was able to identify the accounts receivable subsystem they used and their accounts receivable management. I focussed on their policies for the offering and checking of credit, managing credit levels, charging the credit customers, receiving payment from credit customers and the general management of credit customers. I will be using the information from the interview with Colin as well as information from fictitious accounts receivable to explain their policies.

When Office Products Depot decides to potentially offer credit to a customer, they check credit ratings and follow policies to help them decide if they should
…show more content…
However, more invoices will be sent if the customer is not paying or if they claim that they didn’t receive the original invoice. These invoices are sent out electronically to each customer, as it makes it easier to manage transactions rather than doing it manually. Office Products Depot can only hope that the customer will pay, they cannot physically force the customer to pay, as it will result in a loss of business. This keeps the customer happy with the business as they are not being pestered to pay. By improving this relationship with each particular customer, it makes them more likely to pay on time, and more likely to buy from Office Products Depot in the future. Payments by direct debit are recorded every morning on electronic bank statements. These payments are then checked with the customer’s account to ensure that the correct amount has been recieved. Cash and EFTPOS payments are reconciled with the account of the customer at the end of the business day, to ensure that all is correct. However, cheques go straight into the account before they are checked by the bank. This allows some businesses to take advantage of the processing time while the banks authorise the cheque, by providing an invalid cheque to pay for their account. If a customer chooses to return any products, Office Products Depot issues a credit note to that particular customer for the return of the goods purchased. The return will be

Related Documents