Applicable Research About Setting Prevention System Of Overdue Accounts Receivable Of Transnational Oem Supplier

Only then under the realization of selling and obtaining the monetary fund, the enterprise can compensate the expense in the management of each kind of production consumption and completes cash conversion cycle. It is one of important jobs of cash flow management for the enterprise to strengthen the management of the account receivable which affects directly the vested profit and the cash flow of the enterprise. As for Chinese Enterprise, to strengthen the account receivable management, it is the implementation of"the establishment perfect modern enterprise system"of the 14th session of Third Session, the necessity of the promotion economic sustainable development, and the responsibility of guarantees of the stable and harmonious society.At present in the market the account receivable amounts unceasingly grows. Especially there is low threshold to run business and meager profit in electronic industry so that the competition is day by day intense which causes the sell by credit is one of extremely important competition methods. The transnational enterprise has established the intriguing investment construction, the legal entity network and the transaction pattern because of the requirement of the local government law and reasonable plan of preferential taxes. Therefore, the security and the prompt payment of the account receivable have faced the more credit risk and the cultural collision. Our team has analyzed the primary cause of the past account receivable during routine work with the IE technique. We gather that the overdue account receivable and the internal control system have the closely correlated matrix relations. Then we established the internal control system of prevention of overdue accounts receivable with system platform SAP BW (Business Warehouse).It is important to prevent overdue accounts receivables during daily management of the account receivable. We know the prevention depends on the establishment and improvement of systems control mechanism from the closely correlated matrix relations of the overdue account receivable and the internal control system. We carry out the pattern of"the objective management + systems control"in the practice. The setting and consummation of systems control mechanism are taking the system platform as interface and taking releases of the manpower and the flow management as the goal active system.In the management of the account receivable, manual work is insufficient to go through. Each foothold and subsidiary company has set up independent system which creates a lot of difficult problems of accounts receivable management. We utilize BW, one of ERP SAP increment function, to realize our material conformity and the realization of the prevention system control of overdue account receivable. The system has the mechanism of intelligence forewarn despite the basic functions--the conformity of real-time data and automatic reporting function. Besides, the system development function--proposal allocation center is also under research.