Research On The Improvement Of Accounts Receivable Management Of ATS Sun Power Company

With the continuous development of China's PV industry economy,the competition among enterprises is becoming more and more intense.In order to expand the market share rapidly and improve the profit of enterprises,credit sale has gradually become the main way to attract customers and improve the market competitiveness of enterprises,so as to form accounts receivable.Appropriate credit sales can help enterprises attract target customers,expand the sales volume of the products,and increase the profits of enterprises.But the overtop amount of accounts receivable,it will not only increase the bad debt risk of enterprises,reduce the quality of corporate profits,but also accelerate the outflow of cash,so that enterprises operating funds tight,stop work,or even bankruptcy.Firstly,in this paper,through learning the accounts receivable management literature of domestic and international,combined with ATS solar PV company accounts receivable management current situation,find out its accounts receivable management problem.Secondly,with the purpose on solving the problems in the management of accounts receivable of ATS solar PV Company,this paper worked out the solution on how to improve the management of account receivable.It need to improve from manage team organization,credit policy,due diligence process and credit risk evaluation,etc.Given the credit limits and payment term to each open account based on the risk assessment.Analyzing the credit risk for a domestic strategic customer named Xinyi Solar Holding Ltd as an example to show the credit risk module calculation process and settling 9 domestic important customers credit risk level.At the same time,reinforce the account receivable daily management to do account collection in time.Finally,in order to make the ATS account receivable management improvement program implementing successful,the corresponding actions on system upgrade,policy establishment and senior management supporting for organization change are considered to be taken in ATS.This article considers that,first,in terms of credit organization structure,the credit department should be responsible for accounts receivable management independently.Secondly,an entirely account receivable management system should be built for ATS through setting up the credit policy,collection process and contract management policy.Thirdly,using credit risk evaluation model “score card”,the credit rating of 9 key customers is calculated and the credit risk level specified accordingly.Fourth,in the daily management of accounts receivable,the rule of bad debt provision is defined and the account receivable collection process is standardized.The significance of this paper study: one is to improve the management level for the account receivable of ATS solar PV company for reducing the bad debts and increasing the profitability.And the other is to be considered with a reference experience for other Solar PV industry companies.