Study On Internal Control Of Accounts Receivable In TM Pharmaceutical Industry

In order to maintain market share in the fierce competition, companies increase profits through credit sales, and as thus form large receivable accounts. If receivable accounts manage properly, it can expand production scale, increase sales and market share, while increasing their ability to resist risks; if it is not managed properly, it can make enterprises face severe cash flow difficulties, get the finance in trouble, and ultimately affect the sustainable development of enterprises.TM medicine belongs to the pharmaceutical manufacturing industry. In 2014 it was issued by a piece negative opinion of the inner control audit report. Like many other pharmaceutical companies in the same condition,it is weak of receivable accounts management, and forms a large number of receivable accounts and delinquent accounts receivable at the time of the business revenue growth.Therefore, the company's cash flow situation is bleak, and it affects the normal operation and management activities. Strengthening management and study of receivable accounts, has great significance fot TM Pharmaceutical to improve the management level of receivable accounts and furthermore, improves the overall competitiveness of the industry. The management and study of receivable accounts also have good reference for those companies in the similiar situation.Based on the research results at home and abroad, by compared to the situation TM medicine pharmaceutical industry in, using indicators Situation analysis to analyze the company current status fo receivable accounts from before,middle and afterwards stages to diagnose, and trace reasons from management awareness, organizational structure, institutional system, means of management. Drawn TM medicine on receivable accounts management problems, namely: prior management stage, information of customer profiles is not comprehensive, customer credit rating is casual, credit policy is lack of pertinence; middle management stage, credit terms is casual, credit transaction approval is confused, credit sale department's communication is unefficient; afterwards stage management, customer dynamic information is not timely followed-up, receivable accounts analysis and feedback are not in the place, the responsibility of collection is not sufficient, collection policy is lack of intensity. Internal causes of these problems lies in the weak sense, unreasonable organizational structure and unfully credit management system. The objective factors of these problems are affected by the economic and legal environment,and the customers. In order to solve issues related to TM medicine, in this article proposed the improved project for receivable accounts fulltime credit management from before stage,middle stage and afterwards stage. Finally, at the conclusion of the article it summarizes the result of this research, and put forward the limitations of this article.