Example of AR Process in Companies - AP and AR Process

Last updated at July 26, 2026 by

Example of AR Process in Companies - AR Process (O2R Process)

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AR Process An Accountant Should Perform following Steps: Maintain Record of Sales Orders (Agreement Tracker Excel Sheet) Issue Bills on Time (On Bill Date as per Tracker) Monitor Due Dates (Due Dates Mentioned in Party’s Ledger In Tally) Issue Reminders for Due Dates (2 − 3 Days before due Dates) Monitor Bank Statement for Receipt (Daily / Weekly Pass Entry for Receipt as per Bank Statement) Payment Not Received Payment Received Make Debtors Aging Report Monthly Update Party Ledger Send Email / Call Customers for Payments If Amount Not Yet Received Take Approved for Bad Debts If Short Amount Received Take Approved for Discount If Amount Received Book Bad Debts If Expected to be Received Make Provisions

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant with 16+ years of practical experience and 20+ years of teaching experience. At Teachoo, he simplifies Accounts, Tax and GST with step-by-step examples so students can apply concepts confidently in exams and real life.

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