Management Research On The Receivable Accounts Of Beijing Tide Pharmaceutical Co., Ltd.

In the most Chinese pharmacy company, the transactions of 60% to 90% is selling on credit at present, the management problems of the receivable accounts are grow more and more seriously in front of every pharmaceutical companies, facing the risks of dead accounts and bad loans which is brought by charging the accounts, every pharmaceutical companies should prepares before serious situations and make effective method to control it, therefore, it is essential and significant in reducing business risks and improving the competitive advantages of the companies by establishing a full set of entire credit management system and standardizing the credit sales process of the enterprises.As a typical case, this paper points out the three defects by analyzing the receivable accounts in Beijing Tide Pharmaceutical Co., Ltd. Then the paper proposed improvement program. In the program there are two main priorities:First, the company must establish a new independent credit management department. The new department can carry out effective customer credit analysis, and superintend the whole process of all credit sales. Second, the company must complete the process reengineering of the credit sales in order to control the receivable accounts.The paper consists of three chapters:Introduction is the first chapter. It presents the significance of writing background and the way of writing, has described the theoretical basis of the thesis and analyzed the research of the receivable accounts'status both at home and abroad. Chapter two focuses on the analysis of the status of the receivable accounts of Beijing Tide Pharmaceutical Co., Ltd, explained the existing shortcomings and deficiencies of company's management of charging accounts. In chapter three, this paper point out that Tide Co. must prefect the management of the receivable accounts by establishing the credit management department. This paper shows the solutions, that is, the whole credit management process according to the problem of the receivable accounts of Tide Company.And this paper gives detailed solution aimed at every segment of the process.The two highlighting of the paper:(1) Beijing Tide Pharmaceutical Co., Ltd, can establish the credit management department. And by the new department, Tide Co. can coordinate the sales department and the finance department. The credit management department can carry out an effective credit analysis of the customer and make the reasonable credit policy. With the help, the quality of the receivable accounts can be improved, and the excellent customer can be found. So the situation of blindly sales and high bad debt rate can be change.(2) This paper gives the suggestion of carrying out the whole course credit management in Tide Company. The customers can be classified by the credit score table. And the customer's quality can be optimized. Then according to customer's grade, the adaptive credit policies including the credit period, cash discounts and the credit limits can be set down. The invalid work of the sales department and the finance department doing in the past can be reduced. Also the cost of managing the receivable accounts can be reduced.