Analyzing The Sales Cycle and Accounts Receivable at Pt Citra Pangan Indah Semarang

Abstract

The sales and accounts receivable cycles are key elements in trading companies. If any of these cycles encounter issues, it will impact the company’s profitability. Not only profitability, but the company's operations also rely on the smooth functioning of the sales and accounts receivable cycles. These cycles can be effectively managed when both internal and external factors of the company are well-handled. Employees, as part of the internal factors, must be capable of carrying out their duties and responsibilities. With strict supervision, external factors such as buyer stores will also adhere to their obligations in making payments to the company. The purpose of this research is to identify the issues within the sales and accounts receivable cycles at PT Citra Pangan Indah and how to resolve these problems. This study uses a qualitative approach with primary data collected from PT Citra Pangan Indah. The results indicate that the problems in the sales and accounts receivable cycles arose due to unresolved issues from previous years, which led to an increasing receivables balance. The frequent turnover of employees in a short period also contributed to weak internal control in the company. These problems were eventually addressed by PT Citra Pangan Indah, and a new sales and accounts receivable cycle was implemented to prevent the same mistakes from recurring