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Original Research
PAGE NO.
27-32
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SUBMITED
08 April 2025
ACCEPTED
10 May 2025
PUBLISHED
19 June 2025
VOLUME
Vol.05 Issue06 2025
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of the creative commons attributes 4.0 License.
Analysis Of Accounts
Receivable And Accounts
Payable In Enterprises
Omanov Sanjar Kurbonazar ugli
Associate Professor, Department of Financial Analysis, Tashkent State
University of Economics Acting, Uzbekistan
Abstract:
This article discusses the concept of
receivables and payables from the point of view of
accounting, defines the essence of the analysis of
receivables and payables at the present stage of
development of economic relations, on which the
stability of the financial position of the company
depends both at the current moment and in the future
of its further development. At the same time, it should
be noted that an uncontrolled increase in receivables
and payables can lead to a decrease in the liquidity of
current assets and the solvency of the organization, on
the one hand, and a loss of financial stability, on the
other. Accounts receivable that is not returned in a
timely manner depreciates assets, reducing their value
in the face of inflation, and an uncontrolled increase in
accounts payable creates the risk of claims from
creditors for the bankruptcy of organizations. In
addition, non-payment by debtors of the amount of
debt on time can lead to untimely fulfillment of the
organization's obligations to creditors, tax authorities,
etc., which will necessitate the attraction of new credit
and borrowed funds and, as a result, an increase in cost
due to the payment of interest, a decrease in financial
result. The article also suggests ways to optimize and
improve the organization of settlements with
counterparties of the organization.
Keywords:
Analysis, receivables and payables,
assessment, financial condition, solvency, sustainability,
contractors, suppliers, risks, optimization.
Introduction:
Funds from accounts receivable are one
of the main sources of cash for a manufacturing
enterprise. If customers do not fulfill their obligations on
time, the enterprise will experience a cash deficit, the
enterprise's need for current assets to finance its
current activities will increase, and its financial
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condition will deteriorate. This, in turn, will necessitate
changes in the accounting relationships between the
enterprise and its customers, and the development of
an appropriate policy aimed at repaying loans and
debts.
In addition, any business entity focuses its main
attention on control not only on accounts receivable,
but also on accounts payable. Therefore, one of the
main tasks of control over the movement of debts is to
reduce the level of accounts receivable to an amount
that does not exceed the level of accounts payable.
Continuous control over receivables should ensure
that debts are repaid on time, avoiding delays and
penalties.
Accounts receivable lead to a decrease in cash in the
enterprise, which in turn leads to disruption of
production continuity. Therefore, it is important to
establish continuous control over accounts receivable.
It is important for management to take punitive
measures or bring debtors to some kind of liability for
accounts receivable that have not been repaid on time.
In accounting, the term "debtor" refers to an individual
or legal entity that is indebted to a particular
enterprise. The term "creditor" refers to an individual
or legal entity that owes a particular enterprise. That
is, other enterprises have obligations to this enterprise
in terms of settlements. In this case, obligations that
must be paid by the enterprise are considered credit
obligations, and obligations that must be received are
considered receivable obligations. In bilateral
contractual obligations, one enterprise can be both a
debtor and a creditor. For example, if goods are
delivered under a contract for the supply of goods but
are not paid for, the supplier of the goods is shown as
an account receivable and is considered a debtor, that
is, a creditor of a certain amount of goods to the buyer.
This enterprise itself is a creditor for the enterprises
that purchased these goods. The buyer shows this
amount of debt on the purchased goods as a creditor's
debt until it is fully paid.
Accounts receivable - These are the funds of
the enterprise that have been withdrawn from
circulation and are held by other individuals and legal
entities. The enterprise's own funds or the funds of
other enterprises serve as a source of repayment of
these debts.
Accounts
payable
-These
are
funds
temporarily attracted from other individuals and legal
entities. They are used temporarily in the turnover of
this enterprise. When the due date for their repayment
arrives, these funds must be withdrawn from the
amount of working capital.
Accounts receivable and accounts payable are one of
the problems encountered in the activities of
enterprises and economic entities. However, exceeding
the norm of accounts receivable and accounts payable
and exceeding the payment deadline can lead to a
deterioration in the financial condition of enterprises
and disruptions in the production process. This not only
leads to negative consequences for the activities of
enterprises, but also reduces budget revenues and
negatively affects the macroeconomic stability of the
country. Therefore, the issue of accounts receivable and
accounts payable, as a matter of state importance, is
always under state control. In particular, great attention
is paid to overdue debts. Preventing the growth of
overdue debts and developing measures to reduce
them is one of the issues facing the management of
every enterprise and organization today.
Taking this into account, it is necessary to emphasize
that the proper organization and improvement of the
analysis of receivables and payables in business entities
is one of the most urgent issues in today's conditions of
the ongoing global financial and economic crisis.
Analysis of literature on the topic
The issues of production costs in economic entities are
given a lot of attention in normative legal documents
and works of economists.
According to Doctor of Economics, Professor B.A.
Khasanov, "Profit and profitability are one of the
important indicators of the company's activity and its
evaluation. The factor affecting the profit is the cost"
[5].
Considering the findings of Doctor of Economics,
Professor R.D. Dusmuratov, cost accounting objects are
separate structural units where costs are incurred and
accounted for [6].
Candidate of Economics, associate professor A.
Shoalimov believes that reducing the cost of products
reflects the saving of live labor and manufactured labor,
provides an increase in profits, and makes it possible to
lower wholesale and retail prices [7].
Candidate of Economics, Associate Professor A.V.
According to Ilina, expenses are the value of material,
labor, financial and other resources used in the
economic activity of the organization during the
reporting period. Costs can be assets or costs of the
organization [8].
Candidate of Economics, Associate Professor D.M.
According to Akbasheva, in order to effectively manage
costs, it is necessary to take into account production and
choose the right method of calculating costs and
production costs [9].
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Research methodology
The prevention of overdue receivables is also a
matter of direct state control and concern. Since the
ranking of obligations in mutual relations between
enterprises and organizations determines the
measures for managing state cash flows and drawing
up a plan of economic activities.
The main purpose of the analysis is to
determine measures to improve the financial condition
of the enterprise by accelerating the turnover period
of receivables and payables. A report, a statement on
receivables and payables is prepared on the 1st of each
month and submitted to the relevant organizations.
From this statement, it is also possible to compile a
balance sheet of the enterprise's liabilities.
The analysis assesses the status, composition,
establishment dates, reasons for the emergence of
mutual receivables and payables of enterprises for a
certain period, the justifiability of receivables and
payables, and the emergence of unlikely debts on
receivables and payables.
Conditional turnover ratio of
receivables
=
The net proceeds from the sale are actually
Accounts receivable as of the same period
last year
Conditional turnover period of
accounts receivable
=
Accounts receivable for the same period last
year * 360
The net proceeds from the sale are actually
Accounts payable characterizes the obligations of the
enterprise to pay to the counterparty. We have already
listed above what it includes and the reasons for their
occurrence. The main reason for the emergence of
accounts payable can also be the failure to pay
accounts receivable on time.
The analysis of the composition of credit liabilities
assesses the sequence of obligations by debtors, their
composition by payment terms. Also, as in determining
the turnover ratio and the turnover period of
receivables, the turnover ratio and the period of credit
liabilities are determined. However, the indicators
involved in this are different. In studying the turnover of
credit liabilities, the main indicators are the amount of
goods, services, works and services received and not yet
paid for, as well as the actual indicators of credit
liabilities.
When analyzing accounts payable, special attention
should be paid to their origin, duration, and
composition. The presence of overdue accounts payable
leads to the application of various economic warnings to
the enterprise, economic penalties, and a decrease in
confidence in the enterprise.
Table 1
Analysis of accounts payable by composition and date of establishment
Creditor obligations articles Total at
the end
of the
period
Including by emergence dates
Up to 1
month
1 to 2
months
From 2
to 3
months
From 3
months
Up to 1
year
More
than 1
year
1
2
3
4
5
6
7
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1.
Debt
to
suppliers
and
contractors
90387
514
23
121
96
157
13
10023
1032
2. Debt to separate units
400
312
56
32
-
-
3. Debt to subsidiaries and
affiliated companies
5007
401
9
872
101
15
-
4. Deferred liabilities for taxes and
mandatory payments
6721
419
8
210
3
420
-
-
5. The resulting fragments
-
-
-
-
-
-
6. Insurance debt
-
-
-
-
-
-
7. Debt on payments to targeted
state funds
-
-
-
-
-
-
8. Debts to founders
-
-
-
-
-
-
9. Debt for payment of wages
10. Other payables
25039
187
28
128
9
321
7
1805
-
Total
127554
786
80
165
16
194
83
11843
1032
The total amount of accounts payable at the enterprise
at the end of the reporting period was 31,001
thousand soums. Of this, accounts payable up to 1
month amounted to 19,520.8 thousand soums,
accounts payable from 1 to 2 months amounted to
7,258.1 thousand soums, accounts payable from 3 to 6
months amounted to 2,700 thousand soums. The
amount of accounts payable that were sent overdue but
not collected amounted to 540 thousand soums.
The state of accounts payable can be fully assessed by
studying their turnover levels. The following table of
relationships regarding accounts payable turnover can
be provided.
Table 2
Accounts Payable Cycle Analysis
Indicators
Last year Reporting
year
Differenc
e (+, -)
1
2
3
4
1. Total payables, thousand soums
249458
127554
-121904
2. Cost of production of products (works, services) sold,
thousand soums
929608
2168322
+1238714
3. Total liabilities, thousand soums
258047
163147
-94900
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4. Past due accounts payable, thousand soums
19856
12875
-6981
5. Accounts payable turnover ratio, (2/1)
3,726
16,999
+13,273
6. Accounts payable turnover period, in days (1*360/2)
97
21
-76
7. Share of accounts payable in liabilities, % (1/3*100)
96.67
78.18
-18.49
8. Share of overdue accounts payable in total accounts
payable, % (4/1*100)
7.96
10.09
+2.13
Based on the data in the table above, we can assess the
turnover of accounts payable in the business entity we
are analyzing. The data shows that the accounts
payable at the enterprise decreased by 121,904
thousand soums compared to the same period last
year. On the contrary, the cost of production of sold
products (works, services) increased by 1,238,714
thousand soums in the current year. As a result, the
turnover ratio of accounts payable at the enterprise
increased from 3.726 last year to 16.999 in the
reporting year. That is, the turnover of accounts
payable has accelerated several times. Such results
should be assessed positively for the enterprise. In
addition, the accounts payable turnover period was
reduced from 97 days last year to 21 days this year.
We can positively assess the fact that the share of
accounts payable in the structure of liabilities has also
decreased by 18.49% in the current year. However, it is
necessary to negatively assess the fact that the share of
overdue accounts payable has increased by 2.13% in the
current year. Because such a situation leads to the
payment of economic penalties by the enterprise and
negatively affects its financial condition. A number of
factors have influenced the turnover of accounts
payable, and we can consider these influencing factors
in the table below.
Conditional turnover ratio and turnover period of accounts payable
108400
K1=-------------------=6,553,
16542
16542*360
K2=-------------------=54.9
108400
In the conditions of the global financial and economic
crisis, every business entity must be financially stable.
Therefore, it is important for them to eliminate
receivables and payables that have arisen in the course
of their economic activity as soon as possible.
Therefore, effective analysis of these debts and
measures to reduce them are a pressing problem
today. Only on the basis of the analysis of receivables
and payables can they be assessed.
The following practical measures can be used to
prevent the increase in the volume of receivables by
properly managing them:
Consistently monitor overdue and overdue
accounts with buyers and customers;
Seeking to work with a large number of buyers
in order to reduce the risk of non-payment for
products and services by one or more large buyers;
Pay close attention to the ratio of receivables to
payables; a significant excess of receivables over
payables may negatively affect the financial stability of
the enterprise by attracting additional financing
sources, which, in turn, will lead to the occurrence of
high interest expenses. The maximum limit of this ratio
is 1.0;
Synchronization of cash flows (cash inflows and
outflows), i.e., bringing the period of payment of
receivables and repayment of payables as close as
possible to each other. This leads to a decrease in the
balance of funds on the settlement account and a
reduction in bank loans;
reducing the amount of money in transit
through the use of modern accounting methods;
selling receivables to specialized factoring
companies or banks engaged in debt collection from
corporate buyers;
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Selectivity - that is, determining the intervals
during which certain groups and types of goods are not
sold on credit, but only by timely transfer of money.
This situation arises during periods when the demand
for certain goods is very high.
In developed countries, selling goods on a “2/10 full
30” basis is considered one way to reduce accounts
receivable. It works as follows:
If the buyer pays for the product within 10 days
of receiving the product, he will be given a discount of
2% of the product price;
If the buyer pays for the product between 11
and 30 days, he will pay 100% of the product price;
If the buyer does not pay the price of the
product within a month, a fine will be imposed
depending on the payment deadline.
Reducing accounts receivable and accounts payable
cannot be achieved through a single program and its
control. For this, it is necessary to develop a
comprehensive program.
In our opinion, it is advisable to take the following
measures to prevent receivables and payables:
- the responsibility of the parties in mutual contractual
relations and their strict adherence to the terms of the
contract;
-determine the terms of legal liability for the amount
of any payments sent after the deadline;
-use of modern forms of accounting books;
-development of a mechanism for creating reserves for
doubtful debts, etc.;
CONCLUSIONS AND SUGGESTIONS
In conclusion, it can be said that the analysis of
receivables and payables is a very important process in
assessing the state of receivables and payables and
controlling them. The effectiveness of measures taken
to manage receivables and payables and reduce
overdue debts primarily depends on how this process
is carried out. In this case, great attention should be
paid to the analysis of overdue receivables and
payables. Because overdue receivables and payables
can have negative consequences for the activities of
the enterprise. Foreign scientists offer some indicators
for calculating losses due to untimely repayment of
receivables. These indicators are not very relevant for
our country's economy, but by calculating them, we
will be able to at least partially assess the current
situation.
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Decision PQ-3946 of the President of the Republic of
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Decision PQ-4611 of the President of the Republic of
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February 24, 2020.
Law of the Republic of Uzbekistan No. ORQ-677 dated
25.02.2021 on auditor activities.
Regulation on the composition of production and sale
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