Controlling AR

1. We need to review outstanding AR routinely because if we don’t, there will be any outstanding for long time ago
2.  In term of preventing overdue AP happens, we can set credit limit. System will block a new order if the amount of that new order plus amount of all outstanding AR exceeds the credit limit.
3. Although the outstanding AR is still below the credit limit, but management can block the new order  if the outstanding AR is longer than tolerated months
4. Management can create incentive mechanism to motivate salesman to collect the AR before due date