Question

assume you are developing a system for a manufacturing firm. here is the problem: accountants sees an increase in the number and dollar value of bad-debt write-offs. how do you plan to gain a thorough understanding of this problem? (whom do you want to talk to? what questions should you ask?)

Answer 1

I would like to talk to the finance manager, sales team manager, receivable team manger and the accounts team manager.

The questions I would like to ask are:

1. What is the credit policy of the Company, whether it is complied with or not ?

2. What are the steps taken by the receivable team to collect the payment

3. Why credit sales are made to the customers who already are in default and check points to ensure the same.

4. What is the analysis performed by the finance manager to decide how much credit limit to be given to the particular range of personnel

5. Whether proper reminders are sent to the customer to make payments on time.

6. Whether the credit sales are made after the authorization from the respective authority