Account receivable is the amount of money that the company has the right to receive because it has

provided goods and services to its customer

Account receivable cycle

Start with receiving the order sales va 01 sales team

Availability of the product

Credit limit of the customer sales

Release the order odm

Invoice generatin billing team vf01

Cash application rec the payment from the customer

Cashallocation allocate the payment rec from the customer

Customer reconcillatin

Reporting

Order to cash start with receiving the order then we have to checkthe availability of the product and
credit limit of the customer. The order management teamrelease theorder and billing team generate
the invoice. The cash applicatin team allocate the payment rec from the customer in correct books of
account using t code f32 the fund rec can either be applied or unapplied depending upon the
payment remittance. The we reconcile the customer account and report to the management

Department involved in order to cash

Cash application

Collection

Reconcillatin ‘

Reportng

Dispute management

Receiving the order

Availability of the product

Credit limit of the customer

Release the order

Invoce generatin
Cashapplicatin’

Cash allocation

Customer reconcillatin

Dispute management

Order tocash is a cycle and ar is part of it

Cash applicatin is part of account receivable. In cash application we allocate the incoming payment
received from the customr in coccect customer account with the receivable entry after check the
payment remittance. In cash application we down load bank statement from bank port for this we
are required to login select the period and export to excel and start allocating the payment

Activities covered under cash applicatin

Working on cash application

Allocation of payment rec from the customer

Customer statement

Custome rreconcillation

Clear the customer account

And participate in mis

Question 1: What is Accounts Receivable?

Question 2:- What is O2C Cycle, AR Cycle? (m Imp) Order to Cash

Question 4 How many department are invloved in o2C?

Question 5 what are the componenets of O2C?

Question 6: What is the difference between O2C and AR?

Question 7:- What is Cash Application?

Question :- What are the activities covered under Cash Application?

Question 8:- What is Cash Allocation?

Question What is Applied Credit?

(M.Imp) Question 9:- What is unapplied Credit?`

Question 10:- For example you have recived a payment of

9800 from ABC customer but the customer didnt provide the remittance
& you put the transaction as unapplied credit, later on

the customer has shared the remittance &

you are going to applied it.

What Jornal entry is created in this case?

Question 11:- How many transaction that you receive in your bank on

regular basis?

Question 12:- What is ratio of applied & unapplied credit?

Question 13:- What is the SLA to clear the customer Account?

(service Level Agreement, TAT- Turn around time).

Question:- What is SLA? (service Level Agreement)

Question 14:- What if the SLA get breach?

Question 15:- How many ways do we get the payment from customer?

Question:- What is the difference between Wire & EFT (Electrnic Fund trasfer)

Question 16:-What is your Job Responsibilities?

Question 19:- What is your KPIS? (Key Performance Indicator)

Question 20:- What is payment Remittance?

Question:- How do you receicve the remittance?

Question 21:- Apart from cash application what other activity that you are performing in your

current organization?

Question 22:- What kind of activities that you participate at Month End?

Question 23:- on which ERP you are currently working on?

Question 24:- On which T code are you working on?

Question 24:- What is the process to allocate the payment by F-28

Question 25:- What are the challanges while allocating the payment?

Question 26:- Which geography are you taking care off?

Question :- Is your customer is domestic one or a Global One?

Question 27:- How many are your account heads? (Customer)

Question 28:-What is your daily routine?

Question Are you working from home or office?

Question You get the remittance on mail or recived the hard copy?

Question 29:- What is your acheivement?

Question 31:- Do you have any template while sending the mail to customer?

(M. Imp) Question 32:- What is unidentied Fund/Cash?

Question 33:- What is unallocated Credit?

Question 34:- What is the difference between unapplied & unidentified fund? (M Imp)

Question 35:- What is the difference between cash application & cash allocation?

Question 36:- How frequently do you approah to customer?

Question 37:- What is your shift timings?

Question 38:- For example you have received a payment of 3200 againt the

receivable of 3203 so what is the jornal entry in this case?

Question 39:- What is the process of unidentified fund? what do you do in that?

Question 40:- What is the objective to allocate the fund or clear the Fund in SAP or System?

Question 41:- What is Customer Statement?

Question 42:- How do we prepare the customer Statement?

Question:- When do you prepare the customer statement?

Question 43:- What is Layout & how do we make it?

Question:- What data that we need to provide to the customer?

Question 44:- What is the objective to prepare the customer statement?

Question 45:- What is Customer Reconciliation?

Question 46:- What are the reason for Preparing the Customer Reconciliation?

Question 47:- What is customer ageing report?

Question :- What is Past due Invoice?

Question 48:- How do you prepare the customer ageing report?

Question:- What is the bucket of teh ageing report?

Question 49:- How many transaction that you receive pertains to Unidentified?

Question 50:- The customer shows a credit Balance of Rs 50,000 What does it mean?

Question:- How much of amount that you need to allocate per day & month?