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Can you state five controls relating to the ordering and granting of credit process?

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Question added by Frank Mwansa , ACCOUNTING LECTURER , FREELANCER
Date Posted: 2016/12/11
Ahmed mohsen
by Ahmed mohsen , Senior Accountant , Main Poly Clinic

1: Get a Business Trade Credit Application from Your Customer

2: Check Bank and Trade References

3: Check Business Credit Using Credit Bureaus

4: Set a Credit Limit

5: Set Expectations with Your Customer

Soliman Abd  ALmalak Gendy
by Soliman Abd ALmalak Gendy , مدير ادارة مراقبة حسابات , الجهاز المركزى للمحاسبات

A credit review process is needed to ensure that a business does not grant credit to customer3 who are unable to pay so, we take in consideration : *Review sales order *Collect and review credit applications *To have a security against credit *Assign credit level *Verify clients solvency

Nazmul Islam CMA
by Nazmul Islam CMA , Manager , Robi Axiatal Ltd.

As credit transaction is very sensitive some controls should be there. Below some have been mentioned.

  1. To verify the clients solvency.
  2. To have an idea about customers transaction history.
  3. To have idea about customers financial strength.
  4. To have security (as pledges) against credit.
  5. To keep legal option against the nonperformance of condition.

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