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DEDICATION

To my father and mother for all their support!

I
 THANKS

We cannot present this report without expressing our gratitude to all those who
contributed to its conception or to whom we would like to express our appreciation.

Our special thanks go to :

 Mr BAMBA VAMISSA, Managing Director, for giving us the opportunity

to complete this training course;
 Mr BOUNE Cheick, head of the accounts department and my supervisor;
 Mr KONE Bazoumana, Head of Customer Accounts Department;
 Miss GBIZIE Laure, Miss GOGO Aurélia who marked us during our jour-
ney by their welcome, their advice and their hospitality;
 And to all the staff of PETROCI-HOLDING Côte d'Ivoire, who were always
available when we asked for them, we say thank you.
 Mr. DIABY Moussa, Director of the Institut National Polytechnique Félix
Houphouët-Boigny, who works for the well-being of his students and the
staff of the institute;
 Mr BAKAYOKO Losseyni, Director of ESCAE ;
 Mr Moustapha TRAORE, our Director of Studies at ESCAE;
 Mr TIAPO Ronsard, teacher-researcher at INP-HB, our educational supervi-
sor, for his availability, his sharing of experience and his unconditional sup-
port;
 And to all the staff of PETROCI-HOLDING Côte d'Ivoire, who were always
available when we asked for them, we say thank you.
 To all those whose names we have not been able to mention, may they find
in these words our deepest gratitude.

II
 GLOSSARY

 Customer accounts: These are the individual accounts held by the business
enterprise's customers, recording sales transactions and amounts owed by
customers.
 Accounting monitoring: This refers to the process of monitoring and
managing customer accounts, including monitoring payments, reconciling
accounts and collecting debts.
 Accounting processing: This covers all the activities involved in recording,
verifying and managing the financial transactions of customer accounts,
including issuing invoices, recording payments and monitoring balances.
 Procedure manual: This is a document describing in detail the steps and
rules to be followed in carrying out specific tasks. In this context, an
accounting procedure manual would guide employees through the processes
of monitoring and processing accounts receivable.
 Cheque remittances: This refers to payments received in the form of
cheques issued by customers. Processing cheque remittances involves
verifying information, recording payments and performing bank
reconciliation.
 Payment terms: These are the periods specified in the payment terms gran-
ted to customers to settle their invoices. FOREWORD

III
 CONTENTS

DEDICATION........................................................................................................................................I

ACKNOWLEDGEMENT.....................................................................................................................II

GLOSSARY.........................................................................................................................................III

CONTENTS.........................................................................................................................................IV

LIST OF TABLES................................................................................................................................V

FOREWORD.......................................................................................................................................VI

SUMMARY.........................................................................................................................................IX

ABSTRACT..........................................................................................................................................X

INTRODUCTION..................................................................................................................................1

PART ONE: THEORY AND METHODOLOGY OF THE STUDY.....................................................4

PARTIAL INTRODUCTION................................................................................................................5

CHAPTER I: THEORETICAL ASPECTS........................................................................................6

CHAPTER 2: CUSTOMER ACCOUNT MANAGEMENT AND STUDY METHODOLOGY....21

PARTIAL CONCLUSION...................................................................................................................28

PART TWO: PRACTICAL FRAMEWORK.......................................................................................29

PARTIAL INTRODUCTION..............................................................................................................30

CHAPTER III: PRESENTATION OF THE HOST ORGANISATION AND THE WORK

PLACEMENT PROCESS................................................................................................................31

CHAPTER 4: ANALYSIS OF THE MONITORING AND ACCOUNTING TREATMENT OF

ACCOUNTS RECEIVABLE AND RECOMMENDATIONS........................................................49

PARTIAL CONCLUSION...................................................................................................................62

GENERAL CONCLUSION.................................................................................................................63

BIBLIOGRAPHY................................................................................................................................VI

WEBOGRAPHY...............................................................................................................................VIII

APPENDICES...................................................................................................................................VIII

TABLE OF CONTENTS....................................................................................................................XX

IV
 LIST OF TABLES

Table 1: Customer schedule....................................................................................13

Table 2: Statement of doubtful debts.......................................................................14

Table 3: SWOT analysis..........................................................................................50

Table 4: proposed manual will therefore be presented as follows :.........................55

Table 5: Establishment of schedule monitoring......................................................58

Table 6: Customer classification and codes ............................................................59

V
 FOREWORD

With a view to promoting its development, Côte d'Ivoire, like other nations, has
embarked on a policy of renovating its education system in order to meet the
challenges of modern times. Today, it has a number of grandes écoles, including
the Institut National Polytechnique FELIX HOUPHOUËT BOIGNY (INP-HB) in
Yamoussoukro, which meets several major objectives, the main ones being :

- Optimising the management of human and financial resources;

- The creation of a centre of excellence to train an elite ;

- Building the future technology park ;

- Improving the quality of teaching and the match between training and em-
ployment.

Created by decree no. 96-678 of 04 September 1996, the Institut National

Polytechnique Félix Houphouët Boigny (INP-HB) is the result of the merger and
restructuring of four (04) grandes écoles:

- Institut National Supérieur de l'Enseignement Technique (INSET);

- Ecole Nationale Supérieure des Travaux Publics (ENSTP);

- Ecole Nationale Supérieure d'Agronomie (ENSA);

- The Agricultural Institute of Bouaké (IAB).

Located in Yamoussoukro, the Institut National Polytechnique Félix Houphouët

Boigny (INP-HB) comprises eight (08) grandes écoles, one (1) preparatory school
and four

(4) training centres spread over three (03) sites, namely

VI
The INP-SUD which includes :

- Ecole Supérieure des Travaux Publics (ESTP);

- Ecole Supérieure de Mines et Géologie (ESMG);

- The Ecole Préparatoire des Grandes Ecoles (EPGE);

- Ecole Supérieure de Pétrole (ESPE);

- The Centre for Promotion and Expertise (CPEX);

- The Centre Régional de Formation Supérieure en Métrologie (CREFSEM);

- The African Centre of Excellence for Mining and the Mining Environment
(CEAMEM);

- Diplôme d'Etudes Supérieures de Comptabilité et de Gestion Financière de

l'UEMOA (DESCOGEF-UEMOA).

The INP-CENTRE, which includes :

- Ecole Supérieure de Commerce et d'Administration des Entreprises (ES-

CAE);

- Ecole Supérieure des Industries (ESI);

- The International Data Science Institute (DSI);

INP-NORD, which includes :

- Ecole Supérieure d'Agronomie (ESA);

- Ecole de Formation Continue et de Perfectionnement des Cadres (EFCPC);

- Ecole Doctorale Polytechnique (EDP).

- The African Centre of Excellence for Waste to High Added Value Products
(CEA-VALOPRO).

VII
ESCAE, the school from which we come, has several courses of study, divided
into a short cycle lasting three (3) years and a long cycle lasting five (5) or six (6)
years.

The short cycles include the Finance-Accounting stream, which comprises two (2)
options:

- Management Control (MC) ;

- Accounting and Financial Techniques (TCF).

Training in Finance-Accounting takes place over three years after obtaining the
Baccalauréat de technicien option Comptabilité (BAC G2) or the Brevet de
Technicien option Comptabilité (BT). During these three years, students receive
in-depth theoretical training, which is supplemented by work placements in
companies. These placements are planned as follows:

- At the end of the second year, a placement known as an "immersion place-

ment" is carried out for a minimum of forty-five (45) days. It culminates in a
written report on the work carried out during the placement;

- In the third year, a three (3)-month placement known as a "technician place-

ment" or "production placement" is carried out, culminating in the writing of
an end-of-cycle dissertation which is defended before a panel of professio-
nals and experts in the field of training who will judge the relevance of the
document with a view to obtaining the Diplôme de Technicien Supérieur
(DTS) en Finance Comptabilité option Techniques Comptables et Finan-
cières.

It is within this framework that we were received at the headquarters of the Société
Nationale d'Opérations Pétrolières, abbreviated PETROCI-Holding, more precisely
at the Société Nationale d'Opérations Pétrolières, abbreviated PETROCI-Holding
Client Accounting Department, for our technician internship, during the period
from 13 March 2023 to 13 June 2023, in order to benefit from practical knowledge.

VII
I
IX
 SUMMARY

Founded in 1975, Société Nationale d'Opérations Pétrolières, or PETROCI-Holding

for short, is Côte d'Ivoire's leading oil company. PETROCI aims to be a high-per-
formance company with the ambition of making the Ivory Coast the hub of the pe-
troleum products trade for all the countries in the African sub-region.

A company's performance depends on the reliability of its accounts. However,

during our work placement in PETROCI's accounts receivable department, we
noted malfunctions in the accounts receivable processing process. This situation led
us to study the "monitoring and accounting treatment of a commercial
company's accounts receivable: the case of PETROCI".
The aim of this topic is to improve the management of PETROCI's accounts
receivable. To achieve this objective, we have structured our work in two (02) main
parts. The first, divided into two (02) chapters, defines the basic concepts and presents
the study methods and tools. The second part, also divided into two (02) chapters,
presents PETROCI's host structure on the one hand, and the analysis of accounts
receivable management and proposals to solve problems on the other.

Key words: Accounts receivable, accounts receivable monitoring and accounts

receivable accounting.

X
 ABSTRACT

Founded in 1975, Société National Operations Patrollers, or PETRO-CI-Holding

for short, is Côte d'Ivoire's leading oil company. PETROCI aims to be a high-
performance company with the ambition of making the Ivory Coast the hub of the
petroleum products trade for all the countries in the sub-region, Africa.

A company's performance depends on the reliability of its accounts. However,

during our work placement in PETROCI's accounts receivable department, we
noted malfunctions in the accounts receivable process. This situation led us to study
the "Monitoring and accounting of the accounts receivable of a commercial
company: case of PETROCI".

The aim of this topic is to improve the management of PETROCI's accounts

receivable. To achieve this objective, we have structured our work in two (02)
main parts. The first, divided into two (02) chapters, defines the basic concepts and
presents the study methods and tools. The second part, also divided into two (02)
chapters, presents PETROCI, the host company, on the one hand, and the analysis
of accounts receivable management and suggestions for solving problems, on the
other.

Key words: Accounts receivable, monitoring of accounts receivable and

accounting treatment of accounts receivable.

XI
 INTRODUCTION

A company is a system made up of a set of interdependent elements that

interact with each other. It combines and remunerates factors of production to
produce and sell goods or services in order to make a profit. As a result, every
company is concerned about changes in its internal and external environment in
order to preserve its continuity. Managers also attach great importance to business
management, which involves techniques and resources such as general accounting,
which records and classifies the company's activities, leading to a financial and
accounting organisation that complies with current standards.

Accounting is a fundamental business function because it is a potential source of

information. Its purpose is to provide information at all times to the company's
management, its owners and its various partners.

The company needs better management of its accounts if it is to run smoothly.

During our work placement at PETROCI, our tasks focused mainly on the
company's accounts receivable. In the course of our work, we noted a number of
shortcomings in the accounts receivable management process, such as :

- Lack of accounts receivable control procedures leading to errors in the

coding and analysis of accounts receivable.

- Payment deadline not met.

The situation described above led us to reflect on the topic of "monitoring and
accounting treatment of the accounts receivable of a commercial company: the
case of PETROCI". The problem that emerged was what improvements could be
made to the monitoring and accounting treatment of PETROCI's accounts
receivable?

Addressing this issue raises two (2) major concerns:

1
 - What problems does PETROCI encounter in the accounts receivable
process?

- What solutions can be put in place to manage customer accounts?

The general objective of our study is to contribute to improving the management of

PETROCI's accounts receivable:

- Implementation of a procedure manual on the control of PETROCI's

customer accounts

- Make proposals for improving the management of customer accounts.

The purpose of this study is to give the company a clear picture of its financial
situation. This includes monitoring receivables, payments received and payment
schedules. For us, this work allows us to reconcile our theoretical knowledge with
the practical knowledge acquired throughout the course.

This brief is divided into two (2) main parts, each comprising two (2) chapters.

- The first part focuses on the theoretical and methodological aspects of

the study, which will enable us to define the concepts of our study, to
approach the processing of a company's customer accounts, to show
the different methods of monitoring and processing a company's
customer accounts and to highlight our research methodology relating
to our study;

- In the second part, we will first highlight the functioning of the

structure that is the subject of our study, then we will describe and
analyse the monitoring and accounting treatment of accounts
receivable within this structure and finally we will make proposals.

2
 3
PART ONE : THEORICAL ASPECTS AND METHODOLOGY OF THE
4
 PARTIAL INTRODUCTION

The first part of our study is entirely devoted to the theoretical and methodological
aspects of our study. It is subdivided into two (2) chapters.

The first chapter, entitled "Theoretical aspects", will cover two (2) sections:

- The first section deals with the key concepts of the study;

- The second section looks at the accounting treatment of trade

receivables.

The second chapter, "Customer account management and study methodology",

comprises two (2) sections:

- The first section deals with the management of customer accounts;

- The second section will describe our study methodology.

5
CHAPTER I: THEORETICAL ASPECTS

This chapter is the part in which we explain, organise and set out the ideas gathered
during our research into the main terminologies in our study. It is divided into two
(2) sections.

The first section defines the key concepts of the study:

- Customer account ;

- Monitoring customer accounts.

The second section reviews the theory behind the accounting treatment of trade re-
ceivables:

- Invoicing ;

- Recording invoices in the accounts.

SECTION I: DEFINITION OF THE KEY CONCEPTS OF THE STUDY

I. CUSTOMER ACCOUNT CONCEPT

First of all, we'll take a general look at the account, then we'll look at the customer
account.

1. General information about the account

a. Account definition

In accounting, an account is defined as a double-entry table in which the various

changes made to a balance sheet item by different flows are recorded.

The left-hand side of the account is for inflows or uses and the right-hand side for
outflows or resources. In practice, however, the left-hand side of the account is
called the DEBIT and the right-hand side the CREDIT. Finally, another convention

6
is that the difference between the flows at a given moment is entered in the area
where the flows are the smallest, so that the totals for the two areas are identical.

b. Presentation of the accounts

Schematically, it is presented in the form of a T. In addition, the account has three

presentations:

 Classic account

DEBIT Account name CREDIT

Dates Labels Amounts Dates Labels Amounts

TOTAL TOTAL

 Married column account

Account name
Dates Labels FLOW CREDIT

TOTAL

 Married column account with balance column

7
 Account name
Dates Labels AMOUNT Sales

Flow Credit
Debtors Accounts
payable

With this layout, the account balance is calculated after each transaction.

It should be noted that regardless of the layout, the account highlights the date,
name and amount of the transactions carried out. For some accounts, general terms
such as :
- Inputs and outputs ;
- Income and expenditure (cash account) ;
- Receivables and payments (trade accounts receivable) ;
- Payments and debts (accounts payable).
The accounting (legal) terms applicable to all accounts are DEBIT and CREDIT.

c. Account allocation

Posting to an account means recording a transaction in that account.

Thus, "debiting" an account means recording a transaction on the debit side of the
account, and "crediting" an account means recording a transaction on the credit side
of the account.
This involves debiting or crediting the accounts.

8
 d. Account balance

The net amount of an account is the difference between the total debits and credits.
This difference is called the "balance".
The balance can be :
- In debit when total debits exceed total credits ;
- Creditor when total credits exceed total debits;
- Nil when debits and credits are equal. In this case, the account is said to
be balanced.
In any account, the balance is always entered on the weaker side so that, when the
account is closed, resources and uses are equal.

e. Principle of the double part

Any simple transaction involves two (2) accounts: an account debited and an
account credited with the same amount.
The corollary of this principle is that, for a set of transactions, the total debits are
equal to the total credits.

2. Customer account

a. Definition

The customer account is one of the class 4 balance sheet accounts in the general
chart of accounts. It records all charges invoiced to customers following the sale of
goods or the provision of services. It is used to organise and process a company's
accounts with its customers.

9
 b. Objectives

Accounts receivable objectives are divided into two parts (receivables management
and receivables analysis). What both have in common is that they focus on the
business relationship with customers.
- Receivables management: this involves managing accounts receivable
effectively to ensure that invoices are paid on time and collections are
made consistently.
- Receivables analysis: this enables us to identify and assess the risks
associated with trade receivables, and to take steps to minimise these
risks.

II. NOTION OF FOLLOW-UP

1. Definition

 According to Robert, follow-up is something:

(1) A continuous, regular process.
(2) The elements of which link together to form a whole.
 According to some organisations in particular :
The Organisation for Economic Co-operation and Development (OECD)
"Monitoring is a continuous process of systematically collecting information,
according to selected indicators, to provide managers and stakeholders of an
ongoing development action with information on progress made, objectives
achieved and the use of allocated funds".
The World Bank
"Monitoring is a continuous process of collecting and analysing information to
assess how a project (programme or policy) is being implemented, by comparing it
with expected performance (...) A dashboard that provides regular information on
how things are working".

10
The International Fund for Agricultural Development (IFAD)
"Monitoring is the process of collecting and analysing information on a regular
basis with the aim of facilitating timely decision-making, ensuring transparency
and serving as a basis for evaluating and capitalising on experience".

2. Monitoring objective

The purpose of monitoring is to measure and evaluate performance in order to

better manage outputs and outcomes. The purpose of the monitoring function is to
contribute to the effectiveness and efficiency of the mechanisms for implementing
and managing the intervention, through the continuous assessment of deviations
from forecasts and the taking of the necessary adjustment measures to achieve
operational performance and better use of the resources allocated to the
intervention (financial, human, logistical, time, etc.).

3. Different types of customer follow-up

There are several types of monitoring:

 Organisational monitoring: as the name suggests, organisational

monitoring tracks institutional development, communication,
collaboration, sustainability and capacity building within an
organisation.

 Process monitoring: this is often referred to as "activity monitoring".

It is implemented during the initial stages of a project, as its sole pur-
pose is to track the use of inputs and resources, and to examine how
activities and outputs are delivered.

 Accounting monitoring: this involves keeping a daily record of cash

inflows and outflows. It enables you to manage your cash flow as ef-
fectively as possible, control your costs and calculate the profits gene-
rated.

11
  Financial monitoring: this is used to measure the financial effective-
ness of a project. It makes it possible to track actual expenditure on a
project against the allocated budget.

 Budget monitoring: this involves measuring budget variances, identi-

fying significant variances and analysing them in order to plan correc-
tive action.

 Accounts payable tracking: this involves tracking transactions relating

to a company's suppliers.

 Accounts receivable monitoring: this is a process that involves moni-

toring trade receivables, payments received, customer account ba-
lances and other relevant financial information.

4. Monitoring customer accounts

It is important to monitor the debt, i.e. to ensure that the customer pays the debt on
the due date. There are several ways of doing this.

a. Monitoring deadlines

The customer payment schedule statement, which takes into account customer
invoices that have not yet been collected. This is used to forecast cash receipts for
the cash flow plan, and to monitor and follow up customers who have exceeded
their payment deadlines and who have not yet paid.
Every time a customer is invoiced and the company grants them a payment
extension, it is as if it were lending them money, so it is in the company's interest to
monitor its customer collections very closely. To do this, the company must :
- Find out the total amount of sales invoices awaiting payment;
- Edit and consult your schedules on a monthly or weekly basis;
- Follow up and follow up late customer payments;
- Inform employees who deal with customers.

12
Table 1: Customer schedule.

Invoic Cust Invoice Amount 0 to 30 31 to 60 61 to 90 91-day

e date omer reference s days days days to maturitie
receivab maturity s
le

TOTAL

Source : www.WIKIPEDIA.com

b. Monitoring receivables

The statement of doubtful debts: the company must draw up a statement of

receivables that lists all customers who still owe money to the company, some of
whom are doubtful (i.e. they cannot pay their debt in full) and others who are
irrecoverable (i.e. they can no longer pay anything). Customers are classified
according to three criteria:
- Ordinary customer: a customer who pays his debts without any problems.
- Doubtful customer: this refers to a customer who is unable to pay its
debts in full.
- Insolvent customer: this refers to a customer who is unable to pay with
any certainty.

13
Table 2: Statement of doubtful debts

Cust Claim Regulatio Bala Provisio Provisio Loss Readjustment

omer incl. ns nce nN n N-1 befo Endow Takeo
nam VAT befor re ment ver
e e tax tax

Source: undergraduate general accounting course

14
SECTION II: ACCOUNTING TREATMENT OF TRADE RECEIVABLES

The accounting treatment of trade receivables involves recording sales, monitoring

payments and applying the necessary provisions to reflect the risk of non-payment.
This enables the company to monitor its trade receivables and ensure that the
amounts due are correctly recorded in its financial statements.

I. BILLING

1. Definition

Invoicing is the process by which a company issues an invoice for goods or

services sold to a customer. It also involves issuing an invoice for goods or services
provided to a customer. It is an essential part of accounts receivable accounting.

2. Billing process

After canvassing, the service offer proposed to potential customers by sales staff,
the customer draws up an order form. Once the order form is in the hands of the
company, the latter prepares the delivery, with the release of the goods being
evidenced by the delivery note. The order form and the delivery note are given to
the person responsible for issuing the invoice for checking, and then for issuing the
invoice itself.

a. The order form

A purchase order is a commercial document used by a customer to place an order

for goods or services with a supplier. The purchase order contains information such
as a description of the products or services ordered, quantity, unit price, payment
terms and delivery times.

15
 b. Delivery note

A delivery note is a document used to record the details of a delivery of products or

services from a supplier to a customer. This document is often used by companies
to ensure that the delivery has been made and that the products or services have
been received in accordance with the terms of the order. The delivery note
generally contains information such as the name and address of the customer and
supplier, the date of delivery, a description of the products or services delivered, the
quantity, the unit price and the total amount of the order. The delivery note may
also include information on payment terms and conditions of sale.

c. The invoice

An invoice is a commercial document issued by a company to its customer,

detailing the goods or services sold and the amount to be paid for them. It
constitutes proof of the commercial transaction between the company and its
customer. The invoice must contain accurate and complete information, such as the
name and address of the company issuing the invoice and of the customer, the date
the invoice was issued, a description of the products or services sold, the total
amount payable, the applicable VAT rate and details of the taxes payable. The
invoice may also include additional information, such as payment terms, payment
deadlines and conditions of sale.

d. Invoice types, discounts and surcharges

Types of invoice
There are several types of invoice, depending on their purpose, method of payment
and addressee:
- Purchase invoice: this is an invoice issued by the supplier for a sale of
goods or services to a customer.

16
 - Sales invoice: an invoice issued by a company for the sale of goods or
services to a customer.
- Proforma invoice: an invoice that precedes a commercial transaction and
provides an estimate of the costs and charges associated with an order.
- Credit note invoice: this is an invoice issued to refund a customer or
correct an error in a previous invoice.
- Down-payment invoice: this is an invoice issued for partial payments
prior to the delivery of goods or services.

Discounts
Discounts are discounts on the price of a product or service. There are several
types:
- The discount: this is a reduction granted according to the size of the
quantity purchased. The more units the customer buys, the greater the
discount.
- Discount: this is a reduction granted to take account of a defect, a delay in
delivery or a product that does not correspond to the order.
- Rebate: this is a discount granted at the end of the year or at the end of a
given period depending on the volume of purchases made by the
customer.

Increases
Surcharges are supplements applied to the price of a product or service. They
include
- Disbursements (transport, packaging and insurance costs incurred by the
seller during delivery and charged back to the customer).
- VAT (Value Added Tax) or more precisely VATs (the goods delivered
may be subject to different rates).

17
 II. RECORDING INVOICES IN THE ACCOUNTS

The recording of accounting documents is of paramount importance for the proper

functioning of a company. It is therefore necessary to make accounting entries after
a sale.

1. The invoice for must

The accountant debits account 411 CUSTOMER and credits an income account
(class 7). When selling goods, the accountant will make the following entries.

Debit Credit DATE Debit Credit

account no. account amount amount
no.

411 Customer X

701 Sale of goods X

4431 VAT collected on sales X
(Sale of goods to customer X)

When the sale is collected, a cash account is debited by crediting the customer
account.

Debit Credit DATE Debit Credit

account account amount amount
no. no.

18
 5... Cash account X

411 Customer X

(Settlement of customer's claim

x)

2. Credit note invoice

The accountant debits the revenue account (class 7) and credits account 411
CUSTOMER. When goods are returned, the accountant will make the following
entries.

Debit Credit DATE Debit Credit

account account amount amount
no. no.

70... Cash account X

4431 VAT, charged on sale
411 Customer X

(Invoice credit x)

19
CONCLUSION

In conclusion, this chapter devoted to the theoretical aspect of the monitoring and
accounting treatment of accounts receivable has enabled us to lay the conceptual
foundations and fundamental principles on which our study is based. Three (3) key
concepts have been addressed: the customer account, accounts receivable monito-
ring and accounts receivable accounting treatment. The next chapter will focus on
the management of accounts receivable and the presentation of the methodological
framework of the study, where we will detail the methods and tools we will use to
collect and evaluate the data.

20
CHAPTER 2: CUSTOMER ACCOUNT MANAGEMENT AND STUDY
METHODOLOGY

Like the previous chapter, this chapter is divided into two (2) sections:
- The first section, "Accounts Receivable Management", deals with the
main aspects of accounts receivable management, enabling us to
understand the different ways in which accounts receivable are monitored
and accounted for.
- The second section is entitled "Study methodology". We will explain the
steps and approaches we adopted to carry out our research, which will
show us the means we used to carry out our study.

SECTION 1: MANAGEMENT OF CUSTOMER ACCOUNTS

I. METHODS FOR MONITORING CUSTOMER ACCOUNTS

Accounts receivable monitoring involves applying various methods to ensure

accurate and efficient management of the financial transactions linked to accounts
receivable.

1. Billing

It is essential to generate accurate and complete invoices for every sale or service
provided to a customer. Information such as details of products or services
supplied, quantities, unit prices and total amounts must be correctly recorded on
invoices.

2. Payment tracking

Payments received from customers must be accurately recorded in the accounting

records. Each payment must be allocated to the corresponding customer account,

21
specifying the amounts paid, the payment dates and the payment methods used
(cheque, bank transfer, cash, etc.).

3. Managing late payments

If a customer does not meet the agreed payment deadlines, it is necessary to

monitor these delays closely and take appropriate action.

4. Provision for doubtful debts

To reflect the risk of bad debts, it is often necessary to set aside a provision for
doubtful debts. This provision is an estimate of potential losses arising from
customers who are unable to pay their debts. It is recorded as an expense in the
appropriate accounts to reflect the risk associated with trade receivables.

5. Reconciliation of customer accounts

It is recommended that accounts receivable balances are regularly reconciled with

customer statements or information from the accounts receivable management
system. This makes it possible to check and reconcile the accounts receivable
balances in the company's accounting records with the balances confirmed by
customers.

6. Analysis of trade receivables

Regular analysis of trade receivables enables us to monitor trends, detect potential

problems and identify customers who are frequently late in payment or in financial
difficulty. This analysis can help to implement preventive measures to minimise the
risk of bad debts.

22
 II. TERMS AND CONDITIONS FOR PROCESSING ACCOUNTS
RECEIVABLE

1. Creation of customer accounts

When a new customer is acquired, a customer account is created in the company's

accounting system. Relevant information such as the customer's name, contact
details, payment terms and contractual conditions are recorded in this account.

2. Billing

When a sale is made or a service is rendered to a customer, an invoice is issued to

record the transaction. The invoice generally includes details of the products or
services supplied, unit prices, quantities, total amounts, as well as payment terms
and due dates.

3. Recording payments

When a payment is received from a customer, it is recorded in the accounting

records. The amounts received are allocated to the corresponding customer
accounts to update the customer account balances. Details such as amounts,
payment dates and payment methods used are accurately recorded.

4. Managing late payments

If a customer does not meet agreed payment deadlines, it is important to monitor

and manage late payments appropriately. This may involve sending payment
reminders, communicating with the customer to resolve any issues and taking
recovery action if necessary.

23
 5. Reconciliation of accounts receivable

It is recommended that accounts receivable balances are regularly reconciled with

customer statements or information from the accounts receivable management
system. This makes it possible to check and reconcile the accounts receivable
balances in the company's accounting records with the balances confirmed by
customers.

6. Provision for doubtful debts

To take account of the risk of irrecoverable trade receivables, it is often necessary

to set aside a provision for doubtful debts. This provision is an estimate of potential
losses relating to trade receivables that cannot be recovered. It is recorded as an
expense in the appropriate accounts to reflect the risk associated with the trade
receivables.

7. Financial reporting

Accounts receivable information is used to prepare the company's financial

statements, such as the balance sheet, income statement and cash flow statement.
These financial reports provide an overview of the company's financial position,
including trade receivables and their impact on cash flow.

24
SECTION 2: STUDY METHODOLOGY

The methodology of the study consists of describing and explaining the different
steps and approaches used to carry out the research and analysis required for the
study. In order to carry out this study, necessary information was collected through
data collection tools such as interviews, observations, websites and desk research.
This information was processed using a SWOT analysis tool.

I. Information gathering tools

1. Observation

Observation means paying close attention to what's going on in the company: how
is a particular operation carried out, how does a particular thing work, what is the
importance of a particular action? In this way, we were able to understand certain
things for ourselves and then question our colleagues.

2. Interviews

Interviews are discussions with two or more people who answer the questions we
ask them. These interviews are intended to provide us with the information and
clarifications we need for our work.

3. The websites

The Internet is a vast repository of usable information and data. Our research on
the Google search engine enabled us to understand a number of subjects and to
carry out our work by reading articles on websites.

25
 4. Documentary research

Documentary research involves gathering information from reliable data sources to

expand our knowledge of a subject and enrich our document. The elements we have
gathered to obtain the necessary information are :
- Physical and digital books on accounting management ;
- Official documents or articles from institutions or firms;
- Theses and dissertations by other students ;
- Company documents.

II. DATA ANALYSIS TOOL: SWOT analysis

The SWOT matrix (Strengths, Weakness, Opportunities, Threats) is an evaluation

and analysis tool created in 1960 by four Harvard Business School professors:
Learned, Christensen, Andrews and Guth. The aim of this technique is to determine
the internal or external factors, either beneficial or detrimental to the company, in a
strategic area of activity. It consists of a diagnosis of the company, which will
enable it to devise a strategy to capitalise on its advantages and counter the
unfavourable events linked to its environment. The SWOT matrix is made up of
four key elements that need to be analysed. These are :
- Strengths refer to a company's internal advantages that directly or indirectly
enable it to differentiate itself from other competing organisations.
- Weaknesses represent the company's weak points or the negative effects that
its direct environment (customers, financial institutions, etc.) can have on its
operations.
- Opportunities are all the situations over which the company has no influence
but which have a positive impact and help it to develop.
- Threats also refer to events that the company cannot control and that
represent a danger to its development.
The advantages of this matrix are that it :

26
 - Helps the company to know where it stands in terms of development
advantages and opportunities, and to adapt its strategy in order to amplify
their impact.
- Enables the company to understand the negative aspects that can influence it
and to seek solutions to limit or circumvent their effects.
However, like any technique, SWOT analysis has a number of limitations.
- The subjectivity of the person applying it can affect the perception of
strengths, weaknesses, opportunities or threats, which may be over or
underestimated;
- This technique gives no indication of how to solve the problem;
- The presentation of this analysis may be very simplified and not detailed
enough to fully grasp its substance.
The SWOT analysis is an interesting tool that will enable us to analyse the
monitoring and accounting treatment of the company's accounts receivable.

CONCLUSION
To conclude this chapter on accounts receivable management and our study
methodology, we have described how accounts receivable are managed within a
trading company. We have also set out our study methodology, which we adopted
to conduct our research.

PARTIAL CONCLUSION

27
At the end of this first part, we discussed the concepts related to our study and the
management of customer accounts. This allowed us to learn about the different
concepts needed for our study. In the same vein, we discussed our methodology,
highlighting the various data collection tools and the data analysis tool used to
carry out this work. This analysis tool will be applied in the second part of our
study. This concludes the first part, which deals with the theoretical aspects and
methodology of our study. In the second part, we approach the practical framework
of our study by presenting the host organisation, describing and evaluating its
customer account management system and finally proposing a solution.

28
PART TWO: PRACTICAL FRAMEWORK

29
 PARTIAL INTRODUCTION

The second part of this dissertation is devoted to the practical framework of our
study. It is subdivided into two (2) chapters, each comprising two (2) sections.

The first chapter entitled "Presentation of the host structure and the course of the
placement" will take into account two sections:

- The first section deals with the presentation of the host structure;

- The second section will look at how the course is run.

The second chapter entitled "Analysis of the monitoring and accounting treatment
of accounts receivable and recommendations" will also consider two sections:

- The first section deals with a critical study of the monitoring and
accounting treatment of trade receivables;

- The second section will be about recommendations and action plans,

giving proposals for improvement.

30
CHAPTER III: PRESENTATION OF THE HOST ORGANISATION AND
THE WORK PLACEMENT PROCESS

This chapter deals with the presentation of the host company and the work
placement within the company. It is divided into two (2) sections:

- The first section will deal with the "general presentation of the host
organisation". We will present the history, missions and activities,
organisation and operation of the structure.

- The second section will highlight "the course of our placement within
the organisation". We will detail the various stages we went through
and the tasks we performed.

SECTION 1: PRESENTATION OF PETROCI HOLDING

I. HISTORY

Created in 1975, the Société Nationale d'Opérations Pétrolières, abbreviated

PETROCI-Holding, is a limited company with a capital of 20,000,000,000 FCFA.
Its ambition is to make the Ivory Coast the hub of the petroleum products trade for
all the countries in the sub-region, and indeed for the whole of Africa. Its head
office is at Abidjan Plateau in the HEVEAS building, 14 Boulevard Cadre.
Exploration in Côte d'Ivoire began in 1941-1943 with the discovery of the Eboïnda
oil sands, which marked the start of oil exploration in Côte d'Ivoire, with more than
300 wells drilled to a depth of 20m to find and exploit oil sands. Oil sands
production will reach 10 tonnes per day. This confirmed the existence of oil and
gas in Côte d'Ivoire. Then, in 1952-1963, following geophysical work, SAP
(Société Africaine de Pétrole) drilled 10 wells, without any striking success. The
Ivory Coast was then declared barren of hydrocarbons.

31
After a series of setbacks, the Ivorian government relaunched its oil venture in the
1970s and 1980s, awarding operating licences to international groups (SHELL,
ESSO, ERAP) and creating the national oil operating company PETROCI. This
revival led to the discovery of the first offshore hydrocarbon field, Bélier, in 1974,
and the creation of SMB in 1979. This was followed by the discovery of the Espoir
gas field off Jacqueville in 1979. Then came the discovery of the Foxtrot gas field
in 1981 and the creation of GESTOCI in 1983. In a bid to revive petroleum
activities in Côte d'Ivoire, the government drew up an inactive petroleum code
which, since 1975, has enabled the Société Nationale d'Opérations Pétrolières to
promote the Ivorian sedimentary basin and develop its oil and gas resources by
exploiting the oil and gas deposits in Côte d'Ivoire. PETROCI is therefore the
source of the development of the petroleum industry in Côte d'Ivoire. In this
capacity and in accordance with the context, successive governments have tried to
adapt the company to their economic development objectives and vision.

In 1997, in order to carry out a successful promotion campaign while retaining the
capacity to carry out the many tasks assigned to PETROCI, the government split
PEROCI into four separate companies:

 PETROCI Exploitation Production :

Created on 25 February 1998, it is responsible for hydrocarbon exploration and

production.

 PETROCI GAZ :

Created on 26 February 1998, it is responsible for developing the gas industry.

 PETROCI Industrie Service :

32
Created on 2 March 1998, its aim is to develop industries, trading and wharf
management.

Unfortunately, this form of organisation did not prove successful. It was therefore
decided in 2000 to reintegrate all its activities and return to an organisation closer
to the original one. Thus, on 5 January 2001, following the board of directors'
meeting, a restructuring policy led to the dissolution of PETROCI Exploitation
Production, PETROCI Industrie Service and PETROCI Gaz in favour of
PETROCI-HOLDING.

PETROCI Holding's main objective is to : ''to build an integrated and diversified

petroleum economy, by optimising efforts to find and develop hydrocarbon
resources''.

II. MISSIONS AND ACTIVITIES

1. Missions

The mission of the Société Nationale d'Opérations Pétrolières de la Côte d'Ivoire

(PETROCI) is to :

- The search for, exploration and exploitation of hydrocarbon deposits and all
related and associated substances;

- Promotion of the Ivorian sedimentary basin and management of the subsoil

database;

- The industry, transport, storage and trade of hydrocarbons and all derived
products;

- To take charge, either alone or in collaboration with other companies, of all

measures likely to ensure the continuity and security of Côte d'Ivoire's sup-
plies of hydrocarbons and derived products, in particular the constitution and

33
 management of all movable, financial and commercial operations directly or
indirectly related to the above-mentioned object.

2. Activities

PETROCI's various sectors of activity are :

- Oil exploration ;
- Crude oil and gas production ;
- Natural gas distribution ;
- The sale of butane gas (trading);
- Sale of packaged butane (filling station);
- The petroleum products wharf ;
- The logistics base ;
- The gas requalification and production unit;
- The provision of pipelines.

III. ORGANISATION AND OPERATION

1. A Board of Directors

This Board is made up of six (6) statutory members, including the Chairman of the
Board of Directors. These members meet several times a year to analyse reports,
define general policy, approve the company's budget and approve the parent
company financial statements. The members of the Board of Directors are as
follows:

- Mr JOACHIM BEUGRE, Chairman of the Board of Directors ;

- JOSEPH KOUAME-KRA, Director ;
- Ms KONE YAH MARIAMA, Director ;
- Mr DOSSO ADAMA, Director ;

34
 - Mr NIAMIEN KOUASSI AMBROISE, Director ;
- Mrs MINAFOU FANTA COULIBALY-KONE, Director.

2. The various Directorates (Appendix 1)

a. General management

It is responsible for administering, generating and defining development policies.

The Chief Executive Officer holds the highest position in the company after the
Chairman of the Board of Directors.

Manager: Mr BAMBA VAMISSA

b. Deputy Directorates-General

Deputy Director General in charge of Operations, Production and Techni-

cal Operations (DGA-EPOT).

This is a purely technical department that handles all technical operations. It

collaborates with other departments such as :

- Operations Department ;
- The Drilling and Production Division ;
- Management of the Centre for Analysis and Research ;
- The Engineering and Logistics Department ;
- The Information Systems Department ;
- Direction du Transport des Hydrocarbures par le Pipeline ;
- The Geoscience Data Bank Department.

Manager: M. KAM SIE GEORGES

35
 Deputy General Management in charge of Financial Administration and
Commercial Activities (DGA-AFAC).

Its role is to manage all non-technical operations, i.e. administrative and financial
operations, in collaboration with the following departments:

 The Administration Department ;

 The Human Resources Department ;
 Finance and Accounting Department ;
 The Petroleum Products Marketing Department.

Manager: Mrs BAMBA BRAKISSA

c. Technical Departments

 Exploration Division (DE)

It is responsible for exploring oil and gas blocks and promoting the Ivorian
sedimentary basin.

Manager: M. ESSO SAMUEL

 Drilling and Production Division (DFP)

It is responsible for overseeing oil and gas production and offtake operations, as
well as managing ancillary works.

Manager: Mr SORO SEKOU

 Analysis and Research Centre Division (DCAR)

It is responsible for analysing and interpreting the results of geological and

geophysical research.

36
Manager: Mr FOFANA BAKARY

 Information Systems Department (ISD)

It is responsible for the information system and IT strategy.

Manager: M. YAO ERIC ARTHUR

 Petroleum Products Marketing Division (DCPP)

It is responsible for operating and marketing packaged and bulk butane gas, natural
gas and industrial fuel.

Manager: Mr KARAMOKO MAMADOU

 Engineering and Logistics Department (DIL)

It is responsible for the distribution and storage of oil by-products, providing

logistical services to the oil industry and promoting projects for the industrial
conversion of hydrocarbon resources.

Manager: Mr DOUMBIA SEKOU

 Direction de Transport des Hydrocarbures par le Pipeline (DTHP) (Pipe-

line Hydrocarbon Transport Division)

It provides underground pipelines for the safe transport of petroleum products.

Manager: Mr KY TAHAR

37
 d. The Administrative Departments

 Administration Department (DA)

It is responsible for managing procurement and service providers.

Manager: M. COULIBALY MIMOUNI

 Human Resources Department (DRH)

It is responsible for implementing personnel management systems and procedures.

Manager: Ms KAMARA

 Finance and Accounting Department (DFC)

She is responsible for accounting, fundraising and analysing financial results.

Manager: Mr KANTE HASSAN

e. Coordination

 Audit coordination

It is responsible for diagnosing oil activities and costs.

Manager: AMBEMOU ARMEL

 Coordination of Legal Services

It is responsible for drawing up and monitoring contracts.

Manager: M. BERY YANNICK

38
  Coordination of Communication Services

It is responsible for internal and external communications policy and marketing

campaigns.

Manager: Mr AHMED MEITE

3. Presentation of the Finance and Accounting Department

The Finance and Accounting Department is responsible for determining the

economic actions to be taken to increase financial transactions. This Directorate is
divided into five (6) Departments:

 Accounting Department ;

 Finance Department ;

 Budget Department ;

 Sales Administration Department ;

 Tax Department ;

 Subsidiaries Department.

a. Accounting Department

The accounting department is responsible for managing all aspects of the

company's cash inflow and outflow. It is composed of a General Accounting
Department and an Analytical Accounting Department.

The General Accounting Department is divided into the following sections:

 Customer accounting section ;

 Accounts payable section ;

 Bank accounting section ;

39
  Cash accounting section.

The Analytical Accounting Department calculates and analyses the costs related to
each of the company's activities with the aim of optimising management.

b. Finance Department

The Finance Department is responsible for :

 Supervise the cash register and bank accounts;

 Cash management and control of cash receipts and disbursements,

 Checking cheques and preparing transfer orders;

 Check value dates ;

 Etc...

c. Budget Department

The Budget Department draws up and monitors budgets and ensures that the
company's resources are used efficiently to achieve the company's objectives. This
department is made up of two (2) services:

 Budget Department

Its role is to draw up the budget for each financial year, monitor budget
implementation on a daily basis and take part in drawing up the financing plan.

It analyses the costs of each section and proposes solutions to reduce them. It
regulates the company's expenditure.

 Analysis Department

This department receives the accounting documents and carries out a review, which
consists of checking the authenticity of the documents. For invoices accompanied

40
by a delivery note or order form, this involves ensuring that PETROCI has accepted
the forms.

d. Sales Administration Department

This department is responsible for ensuring that the production sharing contract is
applied, for invoicing and monitoring customer credit and for collecting
receivables.

e. Tax Department

It handles all the company's tax and social security returns. He also checks the
invoices for normality, reason, taxpayer account number and the regime that issued
them, and also checks whether the company that issued them is entitled to charge
VAT and whether this VAT is deductible.

f. Subsidiaries Department

It is responsible for formulating a (financial) opinion on the profitability of

PETROCI's investments. It is also responsible for analysing projects, drawing up
provisional investment and operating budgets for projects and, lastly, assisting
management with day-to-day management by monitoring budget implementation.

41
SECTION 2: INTERNSHIP AT PETROCI HOLDING

I. WELCOME FORMALITIES IN THE CUSTOMER ACCOUN-

TING DEPARTMENT

On 13 March 2023, we had a meeting with PETROCI's Human Resources Director

during which we discussed the terms of the placement and she provided us with the
company's rules and principles.

Following our interview with the Human Resources Director, we were introduced
to all the staff in the department to which we had been assigned. We were then
installed in the customer accounts department.

Our installation began with a meeting with the accountant, who gave us
information about the department's missions, activities and tasks.

II. Presentation of PETROCI's various customers and the role of the

customer accounting department

1. Presentation of PETROCI's various customers

The accounts receivable department is responsible for processing all customer

payment transactions.

Customers are third parties to whom the company sells its goods and services.

Customers are divided into three (3) main groups: butane gas customers, petroleum
product customers and trading customers (markers).

a. Butane gas customers

Butane is a hydrocarbon that is marketed in two (2) forms. It is sold to two (2)
types of customer (packaged butane gas and bulk butane gas)

42
  Packaged butane gas

This gas is already bottled and ready for household consumption.

We have four main customer groups for this type of packaging:

- Agents

These are wholesalers whose business is to buy butane for resale to the public.
They are bound to PETROCI by a contract that requires them to pay a deposit.

- Resellers

Also known as half-wholesalers, they have the same activity as the agent and are
also linked to the company by a contract that consists of buying a certain number of
gas cylinders before being installed.

- Water heater customers

These are customers who subscribe to PETROCI and use gas cylinders as a source
of energy to power their domestic water heaters.

- Various customers

These are people who buy gas for personal use.

 Butane gas in bulk

Bulk butane gas is gas sold without packaging, i.e. it is sold in tankers without
being bottled, and is sold to consumers who need large quantities. Such as :

- Canteens

- The restaurants

- Boarding schools

- Etc...

43
 b. Trading customers

They are wholesalers. PETROCI is the exclusive importer of petroleum products

from Côte d'Ivoire. As such, any butane export buyer (known as a marker) must
place an order with PETROCI. Consequently, in addition to its orders for its filling
centres, PETROCI places orders with national markers in Côte d'Ivoire and the sub-
region. As markers we have the following companies:

- SMAM

- VIVO ÉNERGY

- PETROCI IVOIRE

- KAMA GAZ

- ETC...

c. Petroleum product customers

 Crude oil customers

This oil comes from several exploitation blocks, including CI-11, CI-26, CI-40, CI-
27 and many others, where PETROCI has partners with whom it shares production.
PETROCI's share of production is sold to WORLDWIDE Energy.

 Natural gas customers

Natural gas is obtained from a gaseous mixture of hydrocarbons consisting mainly

of metal and other components. Natural gas has become an essential source of
energy. It is sold to companies such as :

- UNICAO

44
 - UNILEVER

- NESTLE

- SOTRA (for emerging buses)

2. Role of the client accounting department

The role of Accounts Receivable is to receive, classify and code customer payment
documents for the analysis of customer accounts.

III. ACTIVITIES AND TASKS CARRIED OUT IN THE CUSTOMER

ACCOUNTING DEPARTMENT

During our time in the customer accounts department we carried out the following
tasks:

 Receipt of accounting documents ;

 Filing of accounting documents ;

 Coding of accounting documents ;

 Analysis of accounts receivable.

1. Receipt of accounting documents

The aim of this process is to collect all the information and documents we need to
keep the accounts. During our training period, we received invoicing and payment
documents from customers, such as :

- Cheque remittance slip: this is a document drawn up by the customer to

remit cheques to his banker.

45
 - Cash deposit slips: this is a document used when a customer makes a cash
deposit at a bank or financial institution.

- Cash receipts: this is a document issued by a business to certify receipt of a

cash payment.

2. Filing accounting documents

Once the accounting documents have been received, they must be filed and
organised appropriately to facilitate subsequent management.

3. Coding of accounting documents

Coding is nothing more than the allocation of documents resulting from

transactions with the customer. It consists of assigning codes to each accounting
document in order to facilitate their identification and subsequent retrieval. We
have codified the regulations for butane gas customers (agent customers and water
heater customers).

Example: C00047 (customer code); 101132 (payment receipt number);

FC23BUTACC (payment receipt wording); amount.

4. Analysis of accounts receivable

The analysis of the customer account consists first and foremost of unloading the
account of all regular movements, then making the current adjustments, and finally
justifying the various customer balances for the current financial year.

 Lettering

Lettering is the reconciliation of accounting entries. It consists of making the link

between an invoice and its payment after entry. Once the sales transactions have

46
been recorded, we obtain the general ledger, which gives us all the information
about the customer's various payments.

The debit side shows sales and the credit side shows payments.

Lettering therefore consists of cancelling settled transactions in the customer

account when the amount of the invoice issued equals the amount of the settlement.

After lettering, we obtain a list of invoices for which payments have not been made
or for which payments have been partially made.

 Proof of balance

It consists of justifying all unlettered settlements on the customer account. These

unlettered accruals may correspond to :

 Or double billing;

 Or an error in the code;

 Or because the billing entry has not yet been entered.

NB: Customers are grouped into three (3) main groups: butane gas customers,
petroleum product customers and trading customers (markers). Each group has its
own accountant. We have been assigned to the accountant who looks after butane
gas customers.

CONCLUSION

In conclusion, this chapter laid the foundations for the practical part of our study by
presenting PETROCI-HODING, an oil company whose main objective is to build
an integrated and diversified oil economy by optimising research efforts and the
development of hydrocarbon resources. Secondly, this chapter describes the course
of our internship, highlighting the tasks carried out. The next chapter focuses on the
analysis of the monitoring and accounting treatment of accounts receivable using
the SWOT matrix, followed by various proposals and action plans.

47
CHAPTER 4: ANALYSIS OF THE MONITORING AND ACCOUNTING
TREATMENT OF ACCOUNTS RECEIVABLE AND
RECOMMENDATIONS

This chapter is designed to analyse the existing management of customer accounts.

It will be subdivided into two (2) sections as follows:

 The first section, "Analysis of the monitoring and accounting

treatment of customer accounts", involves analysing the existing
situation by highlighting strengths and weaknesses using the SWOT
matrix, interpreting the results of the matrix and identifying the risks
associated with the weaknesses listed.

 The second section "proposals and action plans". We will present

concrete proposals and action plans to resolve the problems identified
in the management of PETROCI's accounts receivable. We will
address each problem individually, detailing the specific measures to
be taken.

SECTION 1: ANALYSIS OF MONITORING AND ACCOUNTING

TREATMENT OF TRADE RECEIVABLES

I. ANALYSIS OF EXISTING SITUATION

The SWOT analysis method is used in this situation to analyse PETROCI's

accounts receivable management.

1. SWOT matrix analysis

A company's success depends on the way it manages its internal resources, which
are sources of strengths and weaknesses, in relation to its environment, which is a

48
source of opportunities and threats. The SWOT matrix is a tool for summarising the
elements of a company's internal and external diagnosis. In this case, we have
analysed PETROCI's accounts receivable monitoring and processing in order to
identify its internal factors, i.e. its strengths and weaknesses. The results of this
analysis are presented in the table below.

Table 3: SWOT analysis.

Forces Weaknesses
 Good accounting organisation ;  No accounting
 Process automation ; procedures manual
 Regulatory compliance ; for managing

 The experience of heads of customer accounts.

services and departments ;  Under-staffing in

 Quarterly statements. Accounts Receivable

;
 Non-compliance
with customer
payment terms ;
 No list of customer
codes classified by
customer group.

Source : nous même

2. Interpretation of results

This section will look at the interpretation of each point identified by our SWOT
analysis.

49
 Strengths

 Accounting organisation

PETROCI has a good accounting organisation, which allows it to define and

allocate its tasks. The customer accounts department is divided into three (3)
sections (butane gas, natural gas and trading) with each section having its own
manager.

 Process automation

PETROCI has its own accounting software called "SAGE LIGNE 1000", which
automates the process of circulating accounting data for these activities.

 Regulatory compliance

Appropriate accounting treatment of customer accounts ensures compliance with

regulatory and tax requirements in terms of invoicing and VAT declarations,
thereby avoiding penalties and legal problems.

 The experience of the Head of Department and Head of Service

The Head of Department and the Head of Service have at least ten (10) years'
experience. They have a good grasp of the stages and rules of the tasks assigned to
them. As a result, they react positively to certain delicate situations.

 Quarterly statements

The quarterly closing of accounts is a procedure for closing PETROCI's accounts

receivable at the end of each quarter. This procedure enables the problems
encountered by the accounts department each quarter to be raised and corrected.

Weaknesses

50
During our time at the company, we observed a number of malfunctions. As no
human work is perfect, we noted a number of shortcomings in the operation of
PETROCI's accounts receivable department, which we will develop in this section.

 No procedures manual for managing customer accounts.

The procedure manual is a document which, in the form of clear and precise
instructions, contains all the company's current operations. It is a common
reference for all the players within the company. Given its importance, its absence
inevitably results in a malfunction in the management of the company. A client
accounting procedures manual needs to be put in place.

 Understaffing in customer accounting.

We were responsible for analysing the accounts receivable. The particularity of

these customers is that they are invoiced inclusive of all taxes (TTC) and pay
exclusive of tax (HT) when we receive the VAT exemption statement. As the
exemptions come in dribs and drabs, it is sometimes impossible to clear the
accounts of the customers concerned. What's more, it's difficult for the understaffed
accounts receivable department to analyse customer accounts effectively.

 Non-compliance with customer payment terms.

Despite rigorous monitoring, some customers do not pay within the deadline of 30
days at the end of the month. This delay can affect the company's cash flow and
make it difficult to pay suppliers.

 No list of customer codes classified by customer group.

We were responsible for coding butane gas customers. We found that PETROCI
customers are not classified by category (butane gas customers, natural gas

51
customers and trading customers). This can make it difficult to find and analyse
information relating to customer accounts.

3. Risks linked to the various weaknesses

 Accounting procedures manual

The lack of a client accounting procedures manual can lead to a number of risks
and potential problems, including

- Inconsistency in the process: employees may interpret tasks and

responsibilities differently, which can lead to errors, delays and poor
accounts receivable management.

- Errors and omissions: without clear and detailed instructions, there is an

increased risk of errors and omissions in the processing of accounts
receivable. This can have a negative impact on the accuracy of accounting
information.

- Lack of transparency and accountability: a well-established procedures

manual helps to establish clear guidelines for employee responsibility and
accountability.

To mitigate these risks, it is important to put in place a detailed procedures manual

for accounts receivable. This procedures manual will provide clear instructions on
the process, responsibilities, checks and internal controls to ensure effective
management of accounts receivable.

 Understaffing in customer accounting

An understaffed accounts receivable department can lead to delays in processing

company operations. An understaffed accounts receivable department can cause
delays in the processing of company operations, such as recording invoices,
invoicing customers and managing accounts receivable.

52
To mitigate these risks, it is essential to recruit and train additional staff to
strengthen the customer accounting team.

 Non-compliance with payment terms

Failure to meet payment deadlines can lead to a major risk for a business, namely
cash flow problems. When customers do not respect payment deadlines, this can
lead to cash flow problems for the company, which can make it difficult to pay
suppliers.

To mitigate this risk, it is important to implement debt collection measures in

accordance with the collection policy.

 No list of customer codes classified by customer group

The absence of a list of customer codes classified by customer group presents a

potential risk for the company, which is the difficulty of identifying which
customers belong to a specific customer category and their customer codes. This
can lead to errors and confusion in the coding of accounting documents.

To mitigate this risk, the company must establish a classification of customers and
their codes.

53
SECTION 2: PROPOSALS AND ACTION PLANS

I. PROBLEM: LACK OF PROCEDURES

1. Proposal

Faced with these weaknesses and risks observed in the previous section, we were
asked to draw up a procedure manual aimed at improving the management of
PETROCI's accounts receivable.

Table 4: The proposed manual will be presented as follows:

Reference DFC-00N
Review 00N
ACCOUNTS RECEIVABLE
Date May 2023
CONTROL PROCEDURE

Page 1/6

Liability Description of the process Documents

Source: ourselves.

2. Action plan

This is where we draw up the accounts receivable control procedure.

a. Accounts receivable control procedure

 Object

This procedure describes the various steps to be followed to ensure that all billings
made during the month have been correctly recorded.

 Field of application

54
This procedure applies to all customer accounts.

 Responsibilities

Implementation of this procedure is the responsibility of the accounts receivable

accountant under the supervision of the head of the general accounts department.

 Description of the process

Customer accounts are checked in the SAGE LIGNE 1000 software.

Reference DFC-000
ACCOUNTS Revision date 001
RECEIVABLE May 2023
CONTROL Page number 2
PROCEDURE
Liability Description of the process
Accounts receivable - Checks by e-mail with the relevant department
accountant that all sales and services for the period have
been invoiced.
- Entered customer payments in the accounts.
- Edit the general ledger, customer trial balance or
customer balance receipts.
- Compares the customer trial balance with the
trial balance.
- Transaction lettering.
- Analysis of any discrepancies.
- Transactions to regularise miscellaneous opera-
tions.
- Proposes to the head of the general accounts de-

55
 partment that customers with outstanding in-
voices dating back more than one (01) year be
classified as doubtful customers.

- Transmits the aged trial balance to the Head of

Head of General the Accounting Department.
Accounting
- Forwards the aged trial balance to the Director
Head of Accounting of Finance and Accounts for an instruction to be
Department received.

- Give the necessary instructions.

Director of Finance and
Accounting - Approves the proposed accounting entries follo-
wing the favourable opinion of the Director of
Head of accounting Finance and Accounting.
department - Forwards approved entries to the Head of Gene-
ral Accounting for explanation.

- Transmits approved entries to the accountant in

charge of customer accounts for posting.
Head of General
Accounting - Accounts for customers as doubtful debts.
- Store invoices and supporting documents in the
accounts analysis workbook.
Accounts receivable
accountant

Source: ourselves.

56
 II. PROBLEM: NON-COMPLIANCE WITH PAYMENT DEAD-
LINES

1. Proposal

When a customer does not meet the payment deadline. Measures should be put in
place to collect trade receivables in accordance with the collection policy.

2. Action plan

This is where we keep track of deadlines

Table 5: Establishment of schedule monitoring.

Invoice Amount Expiry Payment

Custom date due date status Comment
er

Source: ourselves.

This table will allow you to track key information relating to customer payment due
dates. Columns include details (customer name or code), invoice date, amount due,
expected due date, payment status (pending, paid, overdue, etc.) and additional
comments if required (e.g. dunning notices).

This table will allow you to quickly see which customers are overdue, identify the
amounts outstanding and monitor the actions taken, such as reminders sent.

57
 III. PROBLEM: CUSTOMER CODE LIST MISSING, SORTED BY
CUSTOMER GROUP

1. Proposal

Drawing up a list classifying customers and their codes. During our internship we
found that the list summarising all PETROCI's customers was not well organised.

2. Action plan

Here we draw up a classification list of customers and their codes.

Table 6: Classification of customers and their codes ;

58
LIST OF PETROCI CUSTOMERS
N° CODES BUTANE GAS CUSTOMERS
1 C00041 BKAYOKO BKE
2 C00043 SERTIKO
3 C00044 CODISTRI
4 C00047 BAMCI
5 C00048 COSED
6 C00530 COFERGAZ
7 C00532 EMOCIE
8 C00545 SCT ADZOPE
9 C01249 STC YOPOUGON
10 C01250 ETS GRACE
N° CODES TRADING CUSTOMERS
1 C01965 SIMAM
2 C01985 KAMA GAZ
3 C01963 VIVO ENERGY
4 C01972 PETRO IVOIRE
5 C01926 IVORY LPG
6 C01933 OLA
7 C01986 ASMA
8 C01821 TAT
9 C01987 SIR
10 C01910 CORLAY CI
N° CUSTOMER CODES PETROLEUM PRODUCT CUSTOMERS
1 C01232 WORDWIDE ENERGY
2 C01244 UNILEVER
3 C01332 NESTLE
4 C01335 SOTRA
5 C01353 SOTACI
6 C01348 COPACI
7 C01363 ESTYM ENTREPRSE
8 C01447 LES ARCIERES CI
9 C01454 CIPHRAM
10 C01422 SALU-CI

Source: ourselves

59
 IV. PROBLEM: UNDERSTAFFING IN CUSTOMER ACCOUNTING

Faced with these risks, it is essential to recruit and train additional staff to
strengthen the accounts receivable team, which will enable the company to manage
the flow of information within accounts receivable efficiently and reliably.

CONCLUSION

In conclusion, this last chapter analysed and proposed solutions for improving PE-
TROCI's accounts receivable management. This analysis highlighted the strengths
and weaknesses of the accounts receivable system. Finally, proposals and action
plans were put forward.

60
 PARTIAL CONCLUSION

At the end of this first part, we presented the host organisation and the progress of
our placement. We then analysed the company's accounts receivable management,
highlighting its strengths and weaknesses using the SWOT matrix. We interpreted
the results and identified the risks relating to the weaknesses listed in the SWOT
matrix. Finally, we made proposals for each problem and set up action plans. It is
now up to the management of our host organisation to implement the various pro -
posals as far as possible.

61
 GENERAL CONCLUSION

This dissertation is part of our end-of-cycle training course on "Monitoring and

accounting treatment of trade receivables in a commercial company: the case
of PETROCI-HOLDING". In order to better understand the subject, we have
divided it into two parts. In the first part, we began by defining certain concepts
essential to understanding our subject. The second part presents our methodology
for conducting the study.

The second part consisted first of all in presenting our host organisation by getting
to know its organisation and functioning. Then, to describe the tasks carried out, to
make an analysis of its system in order to detect the weaknesses and to propose
solutions for improvement.

At the end of our analysis, we were able to draw up a series of proposals for
improving existing management.

Our research work has been of great benefit to us in terms of skills and
professionalism. We have sharpened our analytical skills and developed new
knowledge in the field of control. We therefore hope that this work will also be of
great interest to PETROCI.

62
 BIBLIOGRAPHY

WORKS

(1) CATTAN Michel, IDRISSI Nathalie & KNOCKAERT Patrick

(10.07.2008),

"Maitriser les processus de l'entreprise", Éditions d'Organisation, Paris,

348 Pages ;
(2) GUERTAOUI. Abdelaziz, MARCOUX. Michelle & Ludovic LE GOFF (01.
03. 2003), " Gestion et organisation ", Édition Bréal, Paris, 313 pages ;
(3) HENRY. Alain & MONKAM-Daverat. I (2001), " rédiger les procédures
de l'entreprise : guide pratique ", 3rd edition, Édition d'Organisation,
Paris, 185 Pages ;
(4) BERGER, Cédric & GUILLARD, serge (2000), "la rédaction graphique
des procédures : démarche de technique de description des processus",
250 pages;

SPECIALISED DOCUMENTS AND COURSES

(1) This document is entitled "FORMATION-FINEX-TRANSFERT-A-

LETRANGER_banques-1", drawn up by the D.G.C.T.P. and shared with
those involved in foreign trade;

(2) "Course in management control, 3rd year (2020-2021), proposed by Mr

KOUASSI, teacher-researcher in the Finance, Accounting and Law
Department (FCD) at the INP-HB;

(3) "First-year general accounting course", by Mr Jean IRIE, lecturer and

researcher in the Finance, Accounting and Law Department (FCD) at the
INP-HB, (ESCAE) 2010 - 2021;

VI
 (4) "General Accounting Course", by Mr N'DOUA Michel, retired teacher-
researcher in the Finance, Accounting and Law Department (FCD) at the
INP-HB, 1st year Finance Accounting (ESCAE) 2019 - 2020;

(5) "Manual of administrative, accounting and financial procedures of

EVIOSYS PACKAGING SIEM", 2018, 188 pages.

MEMORIES

(6) KOUASSI DRISSA, " la mise en place du Manuel de procédures

administratives, financières et comptables de production : cas du Centre de
langues polytechnique de l'INP-HB ", année académique 2020 - 2021, 156
pages ;

(7) YOBOUE KONAN NOEL, "Le contrôle de gestion et l'amélioration de la

performance d'une entité commerciale: cas de SAPHYR-SA", academic year
2020 - 2021, 133 pages;

(8) KLA Affoué Uriel , " Évaluation du dispositif de contrôle interne lors d'une
mission de commissariat aux comptes : cas de NOLIS HÔTEL " ESCAE,
INP-HB , année académique 2017-2018, 110 pages ;

(9) SORO Kolotcholoman Felix, "La mise en place de manuel de procédures:

cas DCAT (Data Communication and All Technologies)", academic year
2019-2020, 97 pages.

VII
 WEBOGRAPHY

 Mise en place d'un suivi de factures [consulted on 13/04/2023 at

11h12] ; [online], url : https://officeopro.com/services/adv-relation-
clients/suivi invoices/comment-faire-suivi-factures
excel/#:~:text=Questions%20en%C3%A9quentes-
,D%C3%A9finition%20du%20suivi%20de%20facturation,et%20du
%20suivi% 20des%20encaissements;

 PAYING AN INVOICE 3 key steps [consulted on

14/05/2023 à 13h46] ; [online] ; url : https://officeopro.com/services/gestion
achats/gestion-client/suivi-reglement-factures-suppliers/reglementation
facture/

 Digital document on "monitoring development interventions / taking

into account the different perspectives of stakeholders"; [consulted
online on 14/05/2023 at 22:41], url :
http://www.ofarcy.net/documentation/HS9-Le_Suivi-

2.pdf ;

 Article "Explanation of the concept of optimisation"; [consulted

online on 17/05/2023 at 13h17], url:
https://economy-pedia.com/11031863 optimization#menu-3

 Article "Why optimise circuits?"; [consulted online on 17/05/2023 at

21h32], url: https://www.eurobios.com/optimisation-de
circuits#:~:text=Optimising%20of%20circuits%2C
%20which,productivit%C3%A9%2 0and%20of%20the
%20performance%20of

VII
I
 APPENDICES

Appendix 1: PETROCI General Management organisation chart........................X

Appendix 2: Agent transmission form.................................................................XI

Annex 3: Transmission form for hot water and bulk customers.........................XII

Appendix 4: coding receipt...............................................................................XIII

Annex 5: Cash deposit slip...............................................................................XIV

Annex 6: Cash deposit slip.................................................................................XV

Annex 7: Cash receipt.......................................................................................XVI

Appendix 8: Cash payment..............................................................................XVII

Appendix 9: Cash payment............................................................................XVIII

Annex 10: Cheque remittance slip....................................................................XIX

IX
 Annex 1: Organisation chart of the PETROCI General Management.

General
Management
Audit coordination

Coordination of Legal Services

QSE coordination

Coordination of Communication
Services

Executive Vice President, Deputy Managing Director in

Exploration, Production and charge of Finance
Technical Operations Administration and

Exploration Division Administration

Department
Drilling and Production
Human Resources
Department
Department
Management of the Centre
for Analysis and Research Finance and
Accounting
Engineering and Logistics Department
Department Petroleum Products
Marketing Department
Information Systems
Department

Geosciences Data Bank

Department Direction de Transport des
Hydrocarbures par le Pipeline (Pipeline

X
Source: PETROCI-HOLDIND

Appendix 2: Mandatary transmission form.

XI
Appendix 3: Transmission form for water-heater and bulk customers.

XII
XII
I
Appendix 4: coding receipt.

XI
V
Appendix 5: Cash deposit slip.

XV
Appendix 6: Cash deposit slip.

XV
I
Appendix 7: cash payment receipt.

XV
II
Appendix 8: Cash payment.

XV
III
Appendix 9: Cash payment.

XI
X
Appendix 10: Cheque remittance slip.

XX
 TABLE OF CONTENTS

DEDICATION........................................................................................................... I

ACKNOWLEDGEMENT........................................................................................II

GLOSSARY............................................................................................................ III

CONTENTS............................................................................................................IV

LIST OF TABLES................................................................................................... V

FOREWORD.......................................................................................................... VI

SUMMARY............................................................................................................ IX

ABSTRACT............................................................................................................. X

INTRODUCTION.....................................................................................................1

PART ONE: THEORY AND METHODOLOGY OF THE STUDY.......................4

PARTIAL INTRODUCTION...................................................................................5

CHAPTER I: THEORETICAL ASPECTS...........................................................6

SECTION I: DEFINITION OF THE KEY CONCEPTS OF THE STUDY......6

I. CONCEPT OF THE CUSTOMER ACCOUNT.......................................6

1. General information about the account...............................................6

2. The customer account.........................................................................9

II. CONCEPT OF MONITORING...........................................................10

1. Definition..........................................................................................10

2. Monitoring objective.........................................................................11

3. Different types of customer follow-up..............................................11

4. Monitoring customer accounts..........................................................12

SECTION II: ACCOUNTING TREATMENT OF TRADE RECEIVABLES15

XX
I
 I. INVOICING............................................................................................15

1. Definition..........................................................................................15

2. Billing process..................................................................................15

II. RECORDING INVOICES IN THE ACCOUNTS..............................18

1. The invoice for..................................................................................18

2. Credit note invoice............................................................................19

CHAPTER 2: CUSTOMER ACCOUNT MANAGEMENT AND STUDY

METHODOLOGY.............................................................................................. 21

SECTION 1: MANAGEMENT OF CUSTOMER ACCOUNTS....................21

I. METHODS OF MONITORING ACCOUNTS RECEIVABLE.............21

1. Billing...............................................................................................21

2. Payment tracking..............................................................................22

3. Managing late payments...................................................................22

4. Provision for doubtful debts.............................................................22

5. Reconciliation of accounts receivable...............................................22

6. Analysis of trade receivables............................................................22

II. TREATMENT OF TRADE RECEIVABLES.....................................23

1. Creating customer accounts..............................................................23

2. Billing...............................................................................................23

3. Recording payments.........................................................................23

4. Managing late payments...................................................................23

5. Reconciliation of accounts receivable...............................................24

6. Provision for doubtful debts.............................................................24

7. Financial reporting............................................................................24

SECTION 2: STUDY METHODOLOGY.......................................................25

XX
II
 I. Information gathering tools.....................................................................25

1. Observation.......................................................................................25

2. Interviews.........................................................................................25

3. Websites............................................................................................25

4. Documentary research......................................................................26

II. DATA ANALYSIS TOOL: SWOT analysis.......................................26

PARTIAL CONCLUSION.....................................................................................28

PART TWO: PRACTICAL FRAMEWORK..........................................................29

PARTIAL INTRODUCTION.................................................................................30

CHAPTER III: PRESENTATION OF THE HOST ORGANISATION AND

THE WORK PLACEMENT PROCESS.............................................................31

SECTION 1: PRESENTATION OF PETROCI HOLDING............................31

I. HISTORY............................................................................................... 31

II. MISSIONS AND ACTIVITIES..........................................................33

1. Missions............................................................................................33

2. Activities...........................................................................................34

III. ORGANISATION AND OPERATION..............................................34

1. A Board of Directors.........................................................................34

2. The various departments (Appendix 1).............................................35

3. Presentation of the Finance and Accounting Department.................39

SECTION 2: WORK PLACEMENT AT PETROCI HOLDING....................42

I. FORMALITIES FOR JOINING THE CUSTOMER ACCOUNTING

DEPARTMENT............................................................................................42

II. Presentation of PETROCI's various customers and the role of the

customer accounting department..................................................................42

XX
III
 1. Presentation of PETROCI's various customers.................................42

2. Role of the Accounts Receivable Department..................................45

III. ACTIVITIES AND TASKS CARRIED OUT IN THE ACCOUNTS

RECEIVABLE DEPARTMENT..................................................................45

1. Receipt of accounting documents.....................................................46

2. Filing accounting documents............................................................46

3. Coding of accounting documents......................................................46

4. Analysis of accounts receivable........................................................47

CHAPTER 4: ANALYSIS OF THE MONITORING AND ACCOUNTING

TREATMENT OF ACCOUNTS RECEIVABLE AND RECOMMENDATIONS
............................................................................................................................. 49

SECTION 1: ANALYSIS OF MONITORING AND ACCOUNTING

TREATMENT OF TRADE RECEIVABLES.................................................49

I. ANALYSIS OF THE EXISTING SITUATION.....................................49

1. SWOT analysis.................................................................................49

3. Risks associated with the various weaknesses..................................53

SECTION 2: PROPOSALS AND ACTION PLANS......................................55

I. PROBLEM: LACK OF PROCEDURES................................................55

1. Proposal............................................................................................55

2. Action plan........................................................................................55

II. PROBLEM: NON-COMPLIANCE WITH PAYMENT TERMS.......58

1. Proposal............................................................................................58

2. Action plan........................................................................................58

III. PROBLEM: ABSENCE OF CUSTOMER CODE LIST SORTED BY

CUSTOMER GROUP..................................................................................59

1. Proposal............................................................................................59

XX
IV
 IV. PROBLEM: UNDERSTAFFING IN CUSTOMER ACCOUNTING.61

PARTIAL CONCLUSION.....................................................................................62

GENERAL CONCLUSION....................................................................................63

BIBLIOGRAPHY...................................................................................................VI

WEBOGRAPHY..................................................................................................VIII

APPENDICES.........................................................................................................IX

Appendix 1: PETROCI General Management organisation chart........................X

Appendix 2: Agent transmission form.................................................................XI

Appendix 3: Transmission form for hot water and bulk customers....................XII

Appendix 4: coding receipt...............................................................................XIII

Appendix 5: Cash deposit slip..........................................................................XIV

Annex 6: Cash deposit slip.................................................................................XV

Annex 7: Cash receipt.......................................................................................XVI

Appendix 8: Cash payment..............................................................................XVII

Appendix 9: Cash payment............................................................................XVIII

Annex 10: Cheque remittance slip....................................................................XIX

TABLE OF CONTENTS......................................................................................XX

XX
V