EVALUATION OF INTERNAL CONTROL SYSTEM OVER MANAGING AND COLLECTING RECEIVABLES IN POST PAID BILL AT PT. PLN RAYON SURAKARTA KOTA (CASE STUDY)

Abstract

PT. PLN Rayon Surakarta is Electricity Company in Indonesia that has main activity which is selling electricity whether it is in credit or in cash. Since their receivables increasing as year by, the company has to ensure that their receivables are managed or collected properly. In order to prevent problems that might come, management has to implements proper internal control in managing and collecting receivables from post paid bill. This research is focused on the internal control over managing and collecting receivables in post paid bill especially in control activities. The researcher use qualitative method and in order to gather data, the researcher use three types of evidence such as documentation, observation, and interview. As the result of evaluation, the researcher found that there are several best practices that are done by the company. First, the company has written organization structure and job description. Second, the company has written Standard Operating Procedures for controlling and managing receivables. Third, documents that are used in this company have been printed in pre-numbered. Fourth, receivable records are maintained by the employee who does not have access to billing process. Fifth, the person who is authorized to accept write off is different with daily employee of receivables. However, there are some weaknesses of managing and collecting receivables in PT. PLN Rayon Surakarta Kota. First, the company is lack of employee. Second is, misstatement in the amount of collecting receivables. Third, there is no clear time period to write off an account receivables. In order to overcome the weaknesses in this company, researcher proposes some recommendations for the company. The company should increase the number of employee who doing TUL Function VI and TUL Function V. The company should synchronize SIA that is used by PT. PLN. And the last, the company need to established clear time period to write of uncollectable account.