Observational analysis reveals increased bad debts in automotive credit sales, suggesting AIS improvements are needed.
General Background: Credit sales are a key strategy in the automotive industry to boost sales volume, yet they pose significant challenges in transaction recording and receivables management. Specific Background: PT. Aksara Motor Medan still relies on a semi-manual accounting information system (AIS) for credit sales, leading to delays in reporting and increased credit risk. Knowledge Gap: Few studies have comprehensively examined the link between semi-manual systems and the rise of bad debts in mid-sized automotive companies. Aims: This study aims to analyze the effectiveness of AIS in supporting accurate recording, reporting, and control of credit sales at PT. Aksara Motor Medan. Results: Findings show that the system is suboptimal, with delayed data updates, weak internal controls, and the absence of an automated reminder system for delinquent customers. Novelty: The study proposes the integration of AIS with a risk-based assessment model using the 5C approach and the COSO framework to strengthen control and risk management. Implications: Full digitalization, structured staff training, automated notifications, and data-driven credit evaluation are recommended to improve operational efficiency and minimize bad debt risks.Highlight : The system is semi-manual, causing reporting delays and credit risk. Arrears rose from 15% to 23.8% in six months. Full digitalization and 5C-based risk analysis are recommended.
No takes yet. Share an insight, caveat, or question.
Hayat et al. (2025) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: