The first is to clearly define what is payable.Under this concept refers to the total debt of the economic entity to all creditors.That is, those funds that should be returned in full after a set period of time.
The most common payables to contractors, as a rule, suppliers of materials and raw materials, as well as buyers of finished products.Regularly there are obligations to employees for work performed.
But not always the organization can repay debts;in this case, existing payables significantly affects financial performance.This is particularly reflected in the level of liquidity and solvency of the company, because it is against these criteria, investors judge the advisability of investing.In addition, if there is a payable in the balance sheet which has not been repaid on time, the counterparty has the right to appeal to the court.In this case, the borrower will have to pay not only the amount of the debt in full, but the allowance provided for in the form of fines, penalties or liquidated damages.
It is understood that the long outstanding obligations to suppliers and other parties can lead to serious consequences such as bankruptcy, there is a complete failure to operate the company in the future.There are two methods of debt collection: the so-called judicial Complaint or extrajudicial.The first involves filing a lawsuit and the expectation of further proceedings, and the second method the parties are free to decide how and in what amount repaid payables.
in accounting is often a situation arises where is the amount of debt that will not be returned to the lender.This debt must be written off and thus display correctly in the balance sheet.So, debt cancellation may be exercised only at the end of the period of limitation.Usually, it is set by a judicial authority and is usually three years, as long as the borrower had to fulfill the obligation in full.Usually, the contract between the lender and the borrower indicating the final maturity date, if the limitation period starts ticking from the day following that date.Earlier, debt cancellation is only possible in the case of bankruptcy and liquidation.
If the organization has temporary financial difficulties, should notify the lender.Based on the available information is being restructured payables, that is to find a compromise and the creation of conditions most favorable for the early performance of obligations.Thus, the lender may extend the term of the loan repayment schedule or create a new partial payment of the debt with the same date of the last payment.Some put forward alternatives in the form of a reduction of the debt, taking into account early repayment or replacement of other debt that is made refinancing.This is done to reduce the risk of default and to guarantee receipt of at least part of the payment.
should also identify ways of restructuring such as credit, innovation, and for mortgage.Set-off of mutual claims is carried out only if the parties are bound by mutual obligations of the same nature, often cash.If the amount of debt a company is less than the other, then the offset is made for a smaller amount.When payable shall be collected with the help of innovations, the parties decide to replace other equivalent debt obligations.If further debt repayment is a big question, then you can use the fall-back.Under this method implies the payment of debt in the form of other property, asset or money.The borrower can pay the property only if it is not providing any credit, and if the other party has given its consent, that is interested in this method of payment of the debt.
