FESA CONSOL

FlexSystem

Non-IFRS Requirements of Credit Control

Issues

The recognition criteria for accounts receivable for IFRS is different from that of credit control due to the fact that it also covers unearned income for signed sales agreements. This motivates finance staff to delay the recognition of accounts receivable to avoid doing reversal adjustments of unearned income during each financial close. Most up-to-date accounts receivable positions thus rely on the use of spreadsheets that cannot be deployed effectively over a multi-user effectively.

  

Expectations

Accounting systems that support the posting of accounts receivable to future periods in order to support both IFRS and non-IFRS requirements is crucial to avoid manipulation of data within the accounting system.

  

Solutions

FESA Financial supports an impressive data import capability when used together with FESA dealing with the posting of any multi-period contracted income thus avoiding any tedious work.

  

Benefits

The credit control function can be implemented and executed to enhance your short-term liquidity position and most importantly all relevant staff can retrieve the most up-to-date accounts receivable information in both a multi-user and multi-location environment.