OPERATIONAL AUDIT ON ACCOUNTS RECEIVABLE (A Case Study of PT Yamazaki Indonesia)

Abstract

Yamazaki Indonesia is one company whose entire business activities or sales are carried out on credit. The company carries out sales activities based on policies set by the company (verbal). The applied credit policy is expected to be able to provide optimal benefits and be able to increase customer satisfaction. This is due to the high level of credit sales risk, which requires companies to carry out all sales procedures based on their credit policies. This study aims to determine the accounts receivable management system run at PT Yamazaki Indonesia, analyze the factors that affect the size of PT Yamazaki Indonesia's receivables, and analyze the effectiveness of controlling receivables against cash flows. The results of this study indicate that based on an analysis of the accounts receivable management system, PT Yamazaki Indonesia has carried out the management, and control of accounts receivable based on the verbal SOP (Standard Operation Procedure) that has been set by the company, but there are still some things that are not implemented. Factors that influence the amount of receivables are the percentage of credit sales, stuck billing customer, and effort of billing. PT Yamazaki Indonesia has a large amount of receivables in the balance sheet, mainly influenced by the large percentage of credit sales and effort of billing undertaken. Based on the analysis of financial performance in the company's financial statements for the period of 2016 - 2017, it shows that the company still has good financial performance. This is indicated by a number of positive financial ratios. Accounts receivable control carried out by PT Yamazaki Indonesia has not been effective against the company's cash collection. This is evidenced from the results of the cash conversion cycle analysis which is less than the average value of the FMCG industry and means that the amount of receivables owned is not good enough to be converted into cash (if compared with FMCG industries) due to the existence of inhibiting factors such as collection and not properly applied credit analysis to all customers.