1. Account Receivable Management System Iris Lee

2. Account Receivable System Structure…5 Minutes Account Receivable Common Data…...10 Minutes Account Receivable Common Data…...10 Minutes Account Receivable System Flow……..60 Minutes Account Receivable System Flow……..60 Minutes A. Account Receivable Maintenance A. Account Receivable Maintenance B. VAT Invoice Issuing Procedure B. VAT Invoice Issuing Procedure C. AR Write Off Procedure C. AR Write Off Procedure D. Letter of Credit Management D. Letter of Credit Management E. AR Month End Procedure E. AR Month End ProcedureTopic

3. Sales Order Sales Return Incoming Payment Notes Receivable Cash Transactions Deposit Confirmation Incoming Payment AR Moth End AR Balance of Payment Deposit Misc. AR Credit Memo Misc. to-offset Deposit to-offset Over Receipt Delivery Note Account Receivable Issue VAT Invoice LC Management AR Revaluation Account Receivable System Structure

4. Common Data  Collection Term  Account Category  VAT Invoice Book Maintenance

5. AR Base Date: 1.Delivery Date 2.Invoice Date 4.Beginning of Next Month of Delivery date of Delivery date 5.Beginning of Next Month of Invoice Date of Invoice Date Note Due Date: XXXX AR Date NR Due Date Shipment Note Base Due Date: 1.Delivery Date 2.Invoice Date 3.AR Date 4.Beginning of Next Month of Delivery date of Delivery date 5.Beginning of Next Month of Invoice Date of Invoice Date 6. Beginning of Next Month of AR Date of AR Date Collection Term

6. Example: Collection Term is OA30 days, NR Due day is 20 days NR Due day is 20 days AR Base Date: Beginning of Next Month of AR Base Date : Beginning of Next Month of Delivery date Delivery date Note Base due Date: AR Date Note Base due Date : AR Date AR Date Calculation 3/20Delivery4/1 AR Base date 5/1 AR date 5/1 Note Base due Date 5/21 Note Due Date 30days1st of next month 20Days Note Due Date: XXXX

7. Accounts Category  Account Receivable  Deposit  Delivery AR  Balance AR  Misc. AR  To-offset Account  Allowance : Be generated from sales return.  Accounts to-offset : Manually entry.  Advance Receive: Be generated by Deposit confirmation.  Suspend Credit : Be generated by Cash Transaction.  Discount: Manually entry. Must mapping to original invoice.  Non-AR VAT Invoice: Only Issue Invoice.

8. VAT Invoice book Setup Uniform VAT Invoice Type To define invoice books by company. Uniform VAT Invoice Book Each Company may have many invoice books Issue Method of VAT Invoice 1.Automatically be issued 2.Manually be issued VAT Invoice Prefix Setup VAT Invoice Book Setup

9. Maintain Invoice axmt500 Maintain Delivery Note axmt620 Sales/Ret urn Note axmt700 Auto Generate AR axrp310 Auto Generate AR Summary axrp330 Trsf Sls/Ret Note to Allowance axrp304 Maintain AR axrt300 Procedure of VAT Invoice Issuing Procedure of Account Receivable Maintain Accounts Receivable axrt300

10. AR Delivery Note AR one to one one to one Delivery Note AR Summary AR Generating Method VAT Invoice Delivery Note Summary one to one one to one

11. AR Exchange Rate Daily rateMonthly Rate Exchange Rate Setup AR parameters: Exchange Rate Base for Domestic Sales Exchange Rate Base for Export Sales Rate Option: Bank Buying Bank Sell Bank Avg. Rate Customs Buy Customs Sell Exchange Base Date 1.Export: Customs Date 2.Domestic Sales: AR date Exchange Rate Parameter

12. Default Setting in CoA of AR Entry Sheet Default Setting in Chart of Account of AR [By CoA Classification of AR] CoA of AR in Header Generate Entry Sheet Maintain Entry Sheet

13. Maintain Accounts Receivable axrt300 VAT Invoice Summarized Issuing axrp340 Batch Issue VAT Invoice axrp320 Maintain Accounts Receivable axrt300 Maintain VAT Invoice axrt310 Print Invoice axrr300 Procedure of VAT Invoice Issuing

14. Invoice Issuing Method 1. Issue VAT Invoice in AR Maintenance(axrt300) 2. Batch Issuing VAT Invoice(axrp320) 3. Summarized Issuing VAT Invoice(axrp340) 4. Issue VAT Invoice after Delivery(axmt620)

15. Receive Notes Receivable anmt200 Print N/R Collection Detail anmr221 Maintain Incoming Payment axrt400 Transfer A/R Entry Sheet to G/L Voucher axrp590 Procedure of Write off Incoming Payment Receive Cash Transaction anmt302 Print Report of Incom/Exp of Cash In Bank anmr320 AR

16. Feature of Write off in AR  Write off by Multiple Currencies  Multiple Credit CoA. & Debit CoA.  Auto Write off  Auto Generate Exchange Gain /Loss  Auto Adjust unbalance Amount

17. Mode in Write off AR ( 一 ) Definition of Temporary Receipt : To generate voucher for cash transaction/NR while cash transaction/NR confirmed. Cash Transaction Entry Sheet D: Cash C: Temporary Receipt Receive NR Entry Sheet D: NR C: Temporary Receipt Write off Entry Sheet D: Temporary Receipt C: AR

18. Mode in Write off AR ( 二 ) Non Temporary Receipt : To generate voucher for cash transaction while Write off AR. Cash Transactions NR Write off Entry Sheet D: Cash C: AR Entry Sheet D: NR C: AR

19. Write off in AR Debit 1.NR 2.TT 3.AR To-Offset 4.Misc. 5.Bad Debt 6.Discount 7.Exchange Loss 8.Cash 9.AP Debit 1.NR 2.TT 3.AR To-Offset 4.Misc. 5.Bad Debt 6.Discount 7.Exchange Loss 8.Cash 9.AP Credit 1.AR 2.Over-Rec. 4.Other AR 7.Exchange Gain 9.Credit of AP Credit 1.AR 2.Over-Rec. 4.Other AR 7.Exchange Gain 9.Credit of AP

20. Maintain Sales Order Axmt410 Maintain Sales L/C axrt200 Procedure of Shipping Modify Sales L/C axrt201 Sales L/C Negotiation axrt210 Maintain Accounts Receivable axrt300 Cash Transaction anmt302 Update Negotiating Date Maintain Incoming Payment axrt400 Letter of Credit Management

21. Feature of LC management  Double confirm: Be confirmed by Logistics and Accounting  Keep detail information Keep LC information / Negotiation Information  Status Tracking: Provide LC Checking report  Credit Control: Be calculated in Credit Control  Cash Forecast Be included in Conglomerate Fund Planning

22. AR Revaluation Purpose: To revaluate AR balance during month end procedure Method 1: Realized exchange gain and loss Method 2: Unrealized exchange gain and loss AXR Parameter Setting Axrs010 Revaluation Rate Revaluation Entry Sheet For Exchange Gain/Loss Change AR Exchange Rate A/R Account Revaluation Report Axrr380 Accrued Voucher for Exch. Gain/Loss Reverse Exch. Gain/Loss On Next Month Monthly Bank Buy Exch. Rate

23. Procedure of AR Month End Correct Unconfirmed Document List aoou702 A/R Account Stated vs. GL Checking Report axrr351 Y N Print A/R Account Stated axrr151 Un-invoiced Delivery Detail axmr630 Sales Revenue Details axrr378 Maintain AR Adjust Org. Transaction Correct Y N A

24. Print Account Period Report aglr200 Customer A/R Account Stated axrr500 Query Period Account Balance aglq101 Print Subsidiary Ledger aglr906 AR Closing axrp401 Check CoA of AR and GL Update Statistics Table aglp130 A