Accounts Receivable Standard Operating Procedure (SOP)
1. PROCEDURE
1.1. Invoicing:
1.1.1. Generate invoices for goods or services rendered to customers.
1.1.2. Include all necessary details such as invoice number, due date, and
payment terms.
1.2. Payment Collection:
1.2.1. Monitor accounts receivable aging reports to identify overdue invoices.
1.2.2. Follow up with customers via phone or email to request payment.
1.2.3. Record all payment transactions accurately in the accounting system.
1.3. Credit Management:
1.3.1. Evaluate the creditworthiness of new customers before extending credit
terms.
1.3.2. Review credit limits periodically and adjust as necessary based on
customer payment history.
1.4. Documentation and Records:
This segment details the requisite documentation and record-keeping protocols
vital to the effective management of accounts receivable processes:
Invoice Template: Outlines precise instructions about the creation and
issuance of invoices to customers, ensuring accuracy and consistency in
financial transactions.
Payment Receipt Log: Provides comprehensive guidelines concerning
the recording and systematic tracking of incoming payments, facilitating
meticulous financial record-keeping practices.
1.5. Payment Posting and Reconciliation:
1.5.1. Record the payment details in the accounting system, including the
payment date, amount, payment method, and vendor details.
1.5.2. Reconcile the payment records with the accounts payable ledger and
bank statements to ensure accuracy.
1.5.3. Enquire and resolve any discrepancies or outstanding payments promptly.
Date: 26/06/2024 1:30 pm
Venue: CEMT Office
Attendees: Neeraj Man Sainju, Kamal Pokhrel, Dipesh Khanal, Bishesh Bhatta, Dipin
Pradhan & Upendra Chhetri
Agenda:
1. Project timeline
2. Bank API Integration
3. Parking Account Concept
4. Single transaction tracing from international agent to domestic payout
5. Compliance Requirements
6. Exchange gain/loss booking mechanism
Meeting Notes:
1. Project timeline
Discuss the status of the project.
Demo version ready by 15th July 2024
Ready to client testing by 31st July 2024
2. Bank API Integration
4 banks (Laxmi Bank,NIC Asia, NIMB & Everest Bank) API integration as
per volume of transactions and paid out to beneficiary accounts.
Treasury interface dashboard for showing bank balance as per bank
books and bank balance as per our books
3. Parking Account
Due to server issue, payment send to multiple times to a same beneficiary
account.
Discuss on how can we introduce concept of parking account in new
software.
4. Single transaction tracing from international agent to domestic payout
Organization have an agreement with agent on loss base.
Organization wants mechanism in new software about how can we track
loss making transactions.
5. Compliance Requirements
Unpaid/ Unsettled payout to be shown in our report & MIS as per
regulatory requirement of NRB.
6. Exchange gain/loss booking mechanism
Organization have foreign currency reserve and when there is change in
foreign currency rate organization wants to book foreign currency
translation income/loss as per accounting policy followed by organization.
Organization have foreign currency reserve and wants to know the
position of FCY holding on real-time basis.
