A typical claim is a bill with payment
Receivables assets arising from the sale of products or services by the customer not paid for yetManage your receivables easily with the online invoice program customer. Trade receivables (FLL) are available in the accounting claims of the reporting entity in respect of third parties, such as customers. A claim arises when the service has been rendered by the creditor (seller), the consideration has not been paid by the debtor (buyer) - in the normal case, a payment - but still.
This results in a demand to the customers
The performance of the creditor is promptly provided to the debtor for the Counter-power is, however, a certain period of payment granted, for example, fourteen days.
The company office furniture XXL sold new Desk chairs for, on the invoice to the Agency Jahn Lindemann.
In this case, office furniture, XXL has provided the performance (Delivery of the Desk chairs), but do not receive counter-performance (payment of the sale price). Office furniture XXL can capture the invoice amount in the balance sheet, therefore, as a claim.
The Agency pays the bill directly at the cash register in Bar, is the counter-performance already at the time of the performance. Receivables from deliveries and services are in the German balance sheet classification according to § HGB, on the assets side (application of funds) under current assets and under item 'trade receivables and other assets'.
Is abbreviated the term by the expression"claims LL“. The office furniture XXL sold four Desk chairs for, to the Agency Jahn Lindemann. The payment is on account The posting record is as follows: The Agency will pay the invoice within the day payment period. Now, the posting record is as follows: at The end of the Fiscal year all trade receivables must be assessed. This is done according to the so-called credit principle the following categories: In the case of these receivables is expected to be in full receipt of payment. Proper claims must be recognised, therefore, the total gross amount (par value). This is done e.g in the case of securities to the lower of cost or market value principle. In the case of doubtful receivables, the payment to the end of the year is uncertain.
The debtor may be, for example, is insolvent or does not pay the amount despite repeated reminders.
These receivables are often posted to a separate account"doubtful debts", to get a better Overview to have.
At the end of the year, the creditor assesses the risk of default, for example to. This of the face value of the claim, he can write off now. As the output value may be, however, recognised only the net amount. It can be assumed that at the end of the year, in the case of a claim that is not paid, it is regarded as a bad debt.
As an example, a failed enforcement may be called.
Bad debt can be completely written off.
In the context of a sales tax correction can also be asked for the VAT back from the tax office. With the customer envelope, the ratio between sales and average accounts receivable inventory calculated. This indicator gives important insight about how much capital is tied up in receivables. Aim of the company is to hold the receivables (and the associated volume of tied-up capital) as low as possible. In order to reduce the customer handling time, a Companies various means available, such as, for example, the granting of discounts or payment order.
