Electronic invoice for payment (e-Invoice) is a digital invoice for payment that is transferred from one information system to another, for example, from the accounting program of an enterprise to the accounting program of a counterparty or a government institution.
Advantages: save time, reduce costs in the private or public sector, reduce errors when entering data into an accounting program.
The goal is to minimize the amount of work and time required to create and send an invoice for payment to the payer (buyer). The e-Cont.md service does most of the work for people. In addition, there is no need to print out an invoice, send it by E-mail (or in some other way) or enter it into an accounting program.
Billing (Advanced e-Invoicing) is the process of generating invoices for customers on a regular or ad hoc basis, depending on the type of plan the customer has chosen.
Vendor/Seller invoicing is a step-by-step process of requesting payment from customers through invoice issuing.
The electronic invoicing system should potentially allow the implementation of a complex billing procedure. Automation of the invoicing system for payment will improve the efficiency of business processes in the company by reducing the time spent on managing invoicing and eliminating possible errors.
What automated billing system should usially provide see HERE.
Accounts receivable (A/R) (Commercial Accounts Receivable) is a debt to an enterprise, organization or institution from legal entities or individuals who are their debtors, i.e. debts receivable.
Accounts receivable arises when the goods (works, services) are sold, but the funds for them have not yet been received, or when the advance payment has been paid to the supplier, but the goods (works, services) have not yet been received on his account,
NAS 2013 Moldova [En] - National Accounting Standards [En] “Receivables and Financial Investments” [En, 2013]
SNC 2020 Moldova [Ro] - National Accounting Standards [En] „Creanţe şi Investiţii financiare” (SNC_7_118) [Ro]
Definitions
4. This standard uses the following terms with the meanings specified:
Receivables – rights of the entity arising from past transactions or events and as a result of which extinction, the inputs (increase) of resources embodying economic benefits are expected.
Trade receivables and advances provided:
17) Trade receivables shall comprise the receivables on goods sold, services provided and work performed.
18) Trade receivables shall be accounted for every delivery of goods, provision of services and execution of work as a concomitant increase in receivables and revenues through current liabilities.
Accounts payable (A/P) (Trade/Commercial liabilities) is a debt of an entity (enterprise, organization, individual) to other persons, which this entity is obliged to repay, i.e. debts payable.
Accounts payable arises when an advance payment is received from buyers, but the goods (works, services) have not yet been sold, or if goods (works, services) have been received from the supplier, but the funds for them have not yet been paid.
NAS 2013 Moldova [En] - National Accounting Standards [En] “Equity and Liabilities” [En, 2013]
SNC 2020 Moldova [Ro] - National Accounting Standards [En] „Capital propriu și datorii” (SNC_9_118) [Ro]
Definitions
4. This standard uses the following terms with the meanings specified:
Liabilities – actual liabilities of the entity arising from the past economic facts and through their settlement that is expected to result in an output (decrease) of resources that incorporate the economic benefits.
Trade liabilities:
45. Trade liabilities include liabilities to:
1) suppliers of goods and services purchased;
2) buyers on advances received for the subsequent delivery of goods and services, etc.
Days Sales Outstanding (DSO) (also Days Receivable, Average Collection Period, Average Debtor Days) is an indicator used by a company to assess the volume of outstanding receivables.
This is the average number of days it takes for a company to receive payment for a sale.
It is equal to the ratio of the number of days in the reporting period to the turnover of receivables. The indicator converts the receivables turnover into its equivalent, expressed in days.
As a rule, the maturity of receivables is calculated monthly.
Accounts Receivable Management (ARM) is the process of extending credit to customers, issuing accurate invoices, and collecting timely payments from customers. Reflects the set of policies and procedures that a company follows to manage credit sales. Accounts receivable management begins with an assessment of the counterparty's creditworthiness and ends with the collection of receivables.
A sound receivables management system should have a "single credit standard", "loan term" (appropriate to the industry) and a "collection program".
Accounts Receivable Automation is the Automation of the process of collecting and managing Commercial Accounts Receivable. This is a complex procedure that, in general, consists of the following aspects:
Accounts Payable Automation is the Autmation of the process receiving electronic invoices for payment, approving invoices for payment, processing information about payments, reconciling invoices with payments and having access to reports.
All invoices for payment are stored in the cloud, in one place.
Automation of Accounts Payable (Trade/Commercial liabilities) accounting includes four components:
Sales order (SO) (Client's order, Customer's order) a document that confirms the customer's order and starts the order fulfillment process. When an order is placed, the company must check whether it has enough inventory to complete the order or whether it has the adequate workforce and supplies to complete the service. If the customer has placed an order, the seller's responsible person must place a sales order and send one copy to the buyer as an order confirmation and retain the other copy as an internal document to initiate the order fulfillment process.
Unlike an invoice for payment, a sales order is not a request for payment from your customer. This is simply a confirmation that the order has been accepted and is being processed. After processing and sending the order or providing the service, the client will be invoiced for payment. Using sales orders to manage accounts receivable becomes more important as your small business grows and communication between departments becomes more complex.
The act of reconciliation of mutual settlements with counterparties – this is a document that is compiled by the accounting department of an organization to reconcile mutual settlements between the parties (organizations, individual entrepreneurs, etc.) for a certain period of time (month, quarter, year).
The act of reconciliation of mutual settlements is an accounting document that reflects:
The act is NOT a primary document, because it DOES NOT confirm the fact of payment of funds to another person, and its use does not change the financial situation of the parties in any way.
In fact, this is a technical document, the use of which in most cases is a voluntary initiative of the accountant.
It is recommended to use it in the following situations:
The data indicated in the act of mutual settlements by the seller organization must match the information of the counterparty.
If discrepancies are found in the credentials, they are fixed in the final part of the document.
The signing of the act of reconciliation of mutual settlements indicates the recognition of the debt by the counterparty.
Reliability-centered maintenance (RCM) is a concept of maintenance planning to ensure that systems continue to do what their user require in their present operating context. Successful implementation of RCM will lead to increase in cost effectiveness, reliability, machine uptime, and a greater understanding of the level of risk that the organization is managing.
Chart of Accounts is a financial organizational tool that provides a complete listing of every account in the general ledger of a company, broken down into subcategories.
Developed for each country separately.
Ministry of Finance of the Republic of Moldova, Order Nr. 119 dated 06.08.2013, on approval of the General Chart of Accounts
The General Chart of Accounts of Moldova is developed on the basis of the National Accounting Standards (NAS) and other accounting regulations, taking into account the disclosure requirements in financial statements and the information needs of the subject.
The General Chart of Accounts applies to entities that maintain accounting records on a double entry basis, with the exception of entities that apply International Financial Reporting Standards (IFRS) and public institutions.
The General Chart of Accounts regulates the procedure for reflecting economic facts on the accounts, which follows from the provisions of the National Accounting Standards and other accounting regulations. The reflection of economic facts on the accounts is carried out depending on their economic content, in compliance with the principles, norms and accounting policies of the entity.
