It is a major weapon of the monetory policy used to control the demand and supply of money (liquidity).
Credit control is the system used by businesses and central banks to make sure that credit is given only to borrowers who are likely to be able to repay it. As such matters are rarely certain, credit controllers control lending by calculating and managing risk.
Specially Credit Control is responsible for:
Cash posting and allocation - Actual cash of the company reported in a timely manner and it has to be reconciled with petty cash and the concern expenses that the company made in cash and yes it should be reported to the accounts where needed. Always try to follow the maximum number of cash inward and outward never increase than the Government rules and regulation and if its increase proper the explanation we have to report.
Aging report with comments - The aging report is the primary tool used by collections personnel to determine which invoices are overdue for payment. Given its use as a collection tool and always it helps full when it's given with contact details and mentioning the reason for late payment and why not paid on a time.
Customer account reconciliation - Yes it has to reconciled when the customer has a query of wrong application of payment with their records and yes company can provide all sign sales order or delivery slip with the invoice generated.
Bad debts report - A bad debt is an account receivable that has been clearly identified as not being collectible. This means that a specific account receivable is removed from the accounts receivable account, if the company found it can be receivable in future than the company can do it as doubtful for some period of time and later transfer to bad debts.
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