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What are the internal control procedures are required for debtors?
What are the internal control procedures that a medium sized business would need to employ in terms of debtors (sales on credit). Most of the online searches don't give an in depth account. In terms of separation of duties, safeguarding, recording and documentation, etc. What internal systems would a business employ to control its debtors.I have tried countless Google searches but they don't go into enough detail, such as, how would credit sales be recorded, the source documents, the reconciliation procedure, etc.
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Credit sales are recorded in a debtors ledger, this requires the issue of invoices which are checked for content and verified against dispatch records. The balances in the ledger are reviewed monthly and those outstanding outside trading terms followed up with the debtor. Accounting is carried out under qualified supervision, this is separate to sales and dispatch and collections are supervised by a person who reports to the financial controller
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