SUMMER INTERNSHIP

PRESENTATION

Prepared By:- Yashpal SinghA1802012329

MBA-IB

MANAGEMENT OF ACCOUNTS RECEIVABLES

INTRODUCTION OF COMPANY

• Agilent became a corporation in November 1999 as a “spin off” of Hewlett-Packard (HP).

• Agilent Technologies is essentially the original test and measurement business of HP, begun in 1939 in the famous ‘garage of innovation’ in Palo Alto.

• This business sector produced over $8 billion in revenues and grew to $11 billion in its first operating year. Headquartered in Palo Alto, California, Agilent has over 47,000 employees based in 40 countries worldwide and customer markets in 120 countries.

• More than half of their revenue is generated outside the United States. Major manufacturing and R&D sites are located in the U.S., Europe, and Asia-Pacific.

• In their first year of operations, Agilent earned a place on the Forbes Platinum 400 list and was ranked #46 on Fortune’s Top 100 Best Places to Work.

 

• Agilent is a diversified technology company whose products and solutions revolutionize how people live and work.

• Agilent’s 20,000 products in 80 product lines focus primarily on advanced test and measurement equipment for the communications-electronics sector, semiconductor products, and analysis tools for chemical/life science industries.

• They provide sensor, analysis, display, and communication tools that leading technology companies then use to create products that change our lives. Relying heavily on innovative, leading edge technology solutions, the company devotes 10-12% of its annual revenue to research and development concentrating on future technologies through the Agilent Labs.

• Agilent has an extensive technology capability and is a leader in every market they serve. Their vision is to be ”…. A technology innovator, a supplier and partner of choice, a great place to work, and a force for economic and social progress.” Their goal is to be a high growth company, growing at least 15% per year .

 

COMPANIES PRIORITIES FOCUS ON :-

• Customers—Making Agilent “Easy To Do Business With” by improving timeliness of deliveries, quality of service, and ease of interface

• Operations—Setting aggressive operational goals and making real time adjustments

• People—Embracing change; cultivating leadership; Living corporate values

• Growth—Outgrow the competition in current markets and execute on initiatives in new markets.

 

AGILENT CURRENTLY HAS FOUR BUSINESS SECTORS:- • Test and Measurement, contributing almost 60% of revenue and

encompassing the Automated Test Group, Communications Solutions Group, and the Electronic Products and Solutions Group.

• Semiconductor Products Group accounting for 20% of revenue.

• Chemical Analysis Group, 10% of revenue but anticipated to be the fastest growing sector as it provides tools for the biotechnology industry.

• Healthcare Solutions Group, 13% of revenue. During my tenure, the decision was made to divest HSG in a sale to the Phillips Corporation and that divestiture is currently ongoing.

• Functions are organized on a global service line basis, centralized under functional heads and “dotted lined” to the business groups as advisors, liaisons, and coordinators. Agilent Laboratories supports future technologies for all business sectors.

 

AGILENT CUSTOMERS :-

COMPETITORS OF AGILENT

OBJECTIVES OF STUDY :-

• List the common classifications of receivables.

• Summarize and provide examples of internal control procedures that apply to receivables.

• Describe the nature of and the accounting for uncollectible receivables.

• How does company manage accounts receivables?

• Identify Ratios to Analyze a Company's Receivables.

Methods to Accelerate the Receipt of Cash from Receivables.

RESEARCH METHODLOGY

1) Primary data The primary data is that data which is collected fresh or first hand, and for first time which is original in nature. Primary data can collect through personal interview, questionnaire etc. to support the secondary data.

2) Secondary data collection method The secondary data are those which have already collected and stored. Secondary data easily get those secondary data from records, journals, annual reports of the company etc. It will save the time, money and efforts to collect the data. Secondary data also made available through trade magazines, balance sheets, books etc.

Research is based on my day to day work related to accounts receivables management in company. My efforts to achieve my objective on time. This project is based on primary data collected through personal interview of head of account department, head of AR department and other concerned staff member of finance department.

SCOPE OF PROJECT :-

 • Current organisation work-culture.

• Industry practical knowledge.

• Gives Professional touch.

• Better awareness about market competition.

• Get chance to face different types of customers and tackle with different Situation.

• Accounts Receivable—used for selling merchandise or services on credit, and normally expected to be collected in a relatively short period.

• An account receivable is classified as a current asset representing money due for services performed or merchandise sold on credit.

• When an account becomes uncollectible, a bad debt expense is incurred.

• Notes Receivable used to grant credit on the basis of a formal instrument of credit, called a promissory note.

• Other Receivables—include interest receivable, taxes receivable, and receivables from officers and employees.

INTRODUCTION OF TOPIC:-

Why do we need receivables? To increase total sales. To increase profits. To meet increasing Competition.  Understanding Receivables As a part of the operating cycle Time lag between sales and receivables creates need for working capital.

Explain how Accounts Receivable are Recognized in the Accounts:-

• For a service organization, a receivable is recorded when service is provided on account.

• Merchandisers record accounts receivable at the point of sale of merchandise on account.

• Entry is recorded to increase both Sales and Accounts Receivable.

• Receivable may be reduced by sales discount and/or sales return.

 

   

How does company manage accounts receivables?

 • Customer contracts

• Phone:- Make calls to remind them to make due payment.

• Fax:- Send information to customer regarding due payment electronically.

• E-mail Address:- Send email to customers for making due payment.

• Customer Terms

• Invoice Form

• Packing slip with product ship

• Proof of delivery of shipments.

  Collecting Accounts Receivables:-  • Collection efforts are proactive and reactive:-

Proactive Collections:- Credit Collections with accounts payable and bank references.

Manage customer credit limits. Strict use of customer terms. COD for new and problem customers. Manage the customer base.

• Target collection efforts.

• Call the customer

• Use new order for leverage of payment.

• Using collection agencies. 

 

    

COLLECTIONS EFFORTS :-

COLLECTION METHODS :-

Centralised / Decentralised collection system Post – dated cheques Pay Orders / Bank drafts Bills of Exchange

Lock – box System

Drop – box System Collection staff/ agents Debt collector Del Credere agent

Concentration banking

MONITORING RECEIVABLES :-

Day Sales Outstanding

The average number of day’s sales outstanding at any time, say end of the month or end of the quarter, is obtained by following the formula.

Accounts receivable at time chosenDay’s sales outstanding = -------------------------------------------- Average daily salesAgeing Schedule :-

Classifies the outstanding accounts receivables at a given point of time into different age brackets. Ex.

Age Group (days) % of receivables

0-30 30 31-60 40 61-90 25 >=90 5

CONCLUSION :-

After 2 months of internship and this presentation I learned :-

• Current organisation work-culture is very important to know. I come to know how is work culture is different in corporates.

• Also gain practical knowledge of work related to my specialization like auditing, make calls to companies regarding various subjects, collection of payments .

• Company tries their best to give full professional touch to me as a employee.

• Better awareness about behavior, work environment in corporates.

• Get chance to face different types of customers and tackle with different Situation.

Thanks You