The Accounts Receivable application component records and controls all customers accounting data. Accounts Receivable is an essential part of sales management.

All postings in Accounts Receivable are recorded directly in the General Ledger. Different G/L accounts are updated based on the transaction like receivables, down payments, bills of exchange, etc, involved.

The system contains a range of tools that can use to monitor open items such as account analyses, alarm reports, due date lists and a flexible dunning program. The communication linked to these tools can be individually formulated to suit the requirements.

This is the case for payment notices, balance confirmations, account statements and interest calculations. Incoming payments can be assigned to receivables due using user-friendly screen functions or by electronic means such as EDI and data telecommunication.

The payment program can automatically carry out direct debiting and down payments. There is a range of tools available for documenting the transactions that occur in Accounts Receivable, including balance lists, journals, balance audit trails and other standard reports.

When drawing up financial statements, the items in foreign currency are revalued, customers and the balances on the accounts are sorted according to remaining life. Accounts Receivable is not merely a basis for adequate and orderly accounting.

It also provides the data required for effective credit management as well as important information for the optimization of liquidity planning.