Economic Sciences /7. Accounting and Auditing

Olena Kashchenko

Kyiv National University of Taras Shevchenko

Issues related receivables as a tool for enterprise resource management

Problem statement. One of the most presses and complex issues of accounting is the accounting of receivables due to the existence of non-payment problems Receivables arising in the economic activities of each enterprise. The current unstable economic situation in Ukraine with significantly increased risks of selling goods and services on deferred payment. Problem receivables growth in liquid assets of the enterprise leads to finding new methods to minimize debt, improving the accounting policy relating to the receivables and is relevant for both research and practical solutions.

Analysis of recent research and publications. Research of this issue devoted considerable attention to such domestic and foreign scientists, as F. Butynets, S. Golov, O. Koblyanska, V. Sopko, N. Gura, V. Shvets, Y. Sokolov, R. Breuil, S. Myers [1-6].

But the problems of accounting and internal control of accounts receivable due to the complexity and variety of subjects and objects of the settlement and payment relations, contradictory regulations require further development of some methodological and practical aspects of accounting and control of receivables.

The objective is to determine the economic substance of receivables company, disclosure of the major problems of its accounting and control, and outline solutions.

The main material. Despite the inability to eliminate debts must be able to arrange the payments to contractors so as to reduce its share in liquid assets. Turnover of capital invested in current assets, directly proportional to increase or decrease in receivables. Assess current condition of assets, possibly in the process of quality and liquidity of receivables. During the operation cycle of the elements of current assets interact, passing four phases. In the first stage the money used to purchase raw materials. The second stage is characterized by the transformation of raw materials during industrial activity in stocks of finished products. In the third stage of finished products sold to consumers until settlement for it is transformed into accounts receivable. The last phase of movement of current assets is very important for management because it is the time receivable upon the repayment is converted into cash, are more willing to participate in the movement of circulating assets. Therefore, you mentioned that accounts receivable is one of the main factors influence on the duration of the operation cycle of turnover. Performance management of enterprise cash flows from operating activities depends on the structure of current assets. Given the liquidity ratio of accounts receivable, its share in current assets should not be significant. Otherwise it would mean that the company can not quickly cover their obligations due to lack of funds in the accounts. This distribution characterizes the moderate use of stocks of raw materials for production, streamlined process finished products, effective management of receivables and the availability of funds that can be used to make payments on inventory.

In accounting for the current economic conditions are often the question arises charging provisions for doubtful debts due to nonpayment of receivables. During the practical application of methods of calculating reserves have questions that need to be addressed: differences found between the accounts receivable accounting and tax purposes, is not enough certainty in the authority over who exactly should determine the level of uncertainty of debt controversial issue is the fact that business on its balance sheet must always be receivable for calculating the amount of bad debt reserve. Creation of a reserve recorded in the account 38 “Provisions for doubtful receivables”. In accounting are correspondence accounts: 944 debited "doubtful and bad debts" and credited 38 “Provision for doubtful debts”. The amount of reserves the company defines itself through one of two existing methods: the coefficient of uncertainty and direct method. This uncertainty factor method requires data of the previous reporting period. If a company has established provisions for doubtful debts, the accounts receivable repaid Locations: debit 38 “Provision for doubtful debts”, loans 36 "receivable customers", 37 "Settlements with various debtors”. Along with these issues may be urgent need for funds at the cash payments that can not be covered by reserves. In this case it is necessary to use this method bad debt refinancing, as factoring.

Conclusions. So, in essence the accounts receivable is a component of current assets, which are directly involved in operating the enterprise. Taking a direct part in settlement payments, accounts receivable are significant factors influencing the financial resources of the enterprise. Improve methods and organization of accounting and control of cash payments, especially accounts receivable, perhaps by identifying potential problems in the system of enterprise accounts and development of practical recommendations, namely: assessment of the financial standing of potential borrowers, their creditworthiness, market reputation, life, the diversification of the clientele limiting, receivables for each individual potential debtor, the use of various forms of debt repayment (mortgage, insurance, bank guarantees or third parties secured registration bill, etc), use of factoring, as well as a bad debt reserve.

List of references:

1. N. Gura Accounting in housing: theory and practice. / K.: Knowledge, 2006.

2. O. Koblyanska, Financial Accounting: Teach. user. – 2-rd ed., revised and updated / K.: Knowledge, 2006. - 450 sec.

3. V. Shvets, Accounting theory. – 3-rd ed., revised and add. - K.: Knowledge, 2008. - 535 sec.

4. V. Sopko, V.Zavgorodniy, Organization accounting, control and economic analysis: Textbook / Kyiv National Economic University. - K.: MBK, 2004. - 411s.

5. R. Breuil, S. Myers. Principles of corporate Finance. M.: Olympus-Consult with, 2008-1120.

6. Sokolov, Y. Accounting: from origins to the present day. M.: "Audit, Unit, 1996. P. 638.