Points to be considered by Accountants while handling AR Process

While creating ledgers of parties, we have to mention credit period.

Mention invoice no. Of the parties while doing entries of sale and receipt of payment.

For new bills

Select new ref

Enter invoice no.

Credit period allowed

Amount of bill

Receipt of payment(if bill avlbl)

Select agst ref

Enter invoice no.

Credit period allowed

Amount of bill

Payment received in advance

Select advance

Enter advance date

Credit period allowed

Amount of bill

Where no bill available

Select on account

Amount of bill

After completing all the entries, we have create peridically debtor aging report.

• Select co. In tally
• Display
• Statement of accounts
• Outstanding
• Receivables
• Select period
• F6 age wise
• Ageing by due date
• Select criteria
• From o to 30 days
• From 30 to 60 days
• (as required by the company)
• Then export

After discussing with the management, we have to make provisions for the bad debts and write off the actual bad debts occured during our period.