What are typical activities that take place in an accounts receivable process?A.Record Goods issue - create invoice - send invoice - receive payment - due date passedB.Create purchase requisition - create purchase order - send PO to vendor - receive goodsC.Vendor creates invoice - scan invoice - enter in ERP system - book invoice - clear invoice - due date passed
Question
What are typical activities that take place in an accounts receivable process?A.Record Goods issue - create invoice - send invoice - receive payment - due date passedB.Create purchase requisition - create purchase order - send PO to vendor - receive goodsC.Vendor creates invoice - scan invoice - enter in ERP system - book invoice - clear invoice - due date passed
Solution
The typical activities that take place in an accounts receivable process are more closely related to option A. Here is a step-by-step breakdown:
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Record Goods Issue: This is the first step where the company records the goods or services that have been provided to the customer.
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Create Invoice: Based on the goods or services provided, an invoice is created. This invoice details the amount the customer owes to the company.
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Send Invoice: The invoice is then sent to the customer. This can be done through various methods such as mail, email, or through an online portal.
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Receive Payment: The company then waits to receive payment from the customer. This payment should match the amount listed on the invoice.
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Due Date Passed: If the due date for the payment has passed and the company has not received payment, then the invoice is considered overdue. The company may then take steps to collect the overdue payment.
Option B is more related to the procurement process, and option C is more related to the accounts payable process.
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