LayerX, Inc., which aims to digitize all economic activities, has released a new function for its “Backraku Accounts Receivable Management” that eliminates the burden of managing advance payments. This automates the processing of advance payments made before sales are recorded, reducing accounting errors and improving business efficiency.
In the sales activities of a company, there are many cases where a part or all of the payment is received from a business partner before the goods or services are provided. In such cases, revenue and receivables are not yet recognized at the time of receipt, so in accounting terms, the received funds must be temporarily recorded as liabilities such as advance payments, and then withdrawn in line with the recognition of revenue from the following month onwards.
Also Read: Fujitsu to Boosts AI Governance in C-NOAH Cloud Service
However, in practice, it was necessary to manage the data individually using Excel or other tools to determine whether or not advances should be recognized at the time of payment, and to create journal entries for recording and withdrawing advances, which placed a burden on accounting staff.
SOURCE: PRTimes
