Current asset management in the enterprise

2005	2006	2007	2008
2009
Receivables	17 045	52 180	56 393	82 065	72 560
Balance	55 861	90 886	119 668	127 477	107 173
Share of receivables in the balance sheet total	0.26	0.5	0.27	0.59	0.63

Receivables in the economy have two important features:

• 
  A source of free money for the debtor;
  
• 
  Increasing products and services market for the lender.
  

In real practice, it is impossible to reduce accounts receivable to zero but it is justified with respect to the expired part of it. In order to minimize the risk of expired accounts receivable, which may lead business to losses, it is needed to improve the system of management.


Figure 3.2.1. Schematic model of the accounts receivable control system of an enterprise

A generalized theoretical model underlying the establishment of management systems accounts receivable can be illustrated by Fig. 3.2.1. Controlled subsystem (object) is formed as a result of shipping products to customers and conduct payments, including advances to suppliers of material resources and components, as well as to partners for a variety of services rendered to it (the entrance to the control system). At the output there are formed accounts receivable including overdue. The process of regulatory impact is supported by three units: implementation of measurement functions, management and implementation of executive functions. Measuring unit based on the creation of a database on debtors determines the composition, size, structure, and statute of limitations of accounts receivable that is used by the control unit to develop a corrective management actions. For this control subsystem produces a target and functional structure of action based on the formulation of goals, objectives and principles of management, updating the composition and structure of the database on debtors, the expansion of theoretical knowledge and cumulated experience for management of accounts receivable, as well as taking into account the probabilistic nature of behavior debtors. As a result, developed set of means of impact is realized by the executive block which carries out correction of potential payments to debtors (input control). This completes a conventional management cycle of accounts receivable.
In projected control system emphasis is on reducing external receivables arising through the fault of suppliers of material resources and components, whom advance payments were carried out to, and they did not provide timely delivery in accordance with the terms of the contract.
Effectiveness of management of accounts receivable is expressed in ensuring timely repayment of money and conducting sustained and concerted work of involved in its structural divisions of enterprise. To clarify the management objectives of accounts receivable it is important to more clearly identify the detailed structure the subjects involved in its appearance and elimination of expired parts (Fig. 3.2.2).
Figure 3.2.2. Participants in the process of appearance and management of accounts receivable

The interaction organization between actors involved in the occurrence and regulation of accounts receivable, suggests respect for the fundamental principles that promote effective work of management system of accounts receivable (Fig. 3.2.3).