CA Inter, Paper 8A, Chapter 8 - Receivables Management by Prof. Bhavin Gandhi. Management of receivables refers to planning and controlling of 'debt' owed to the firm from customer on account of credit sales. It is also known as trade credit management. The basic objective of management of receivables (debtors) is to optimise the return on investment on these assets. Large amounts are tied up in receivables, there are chances of bad debts and there will be cost of collection of debts. On the contrary, if the investment in receivables is low, the sales may be restricted, since the competitors may offer more liberal terms. Therefore, management of receivables is an important issue and requires proper policies and their implementation. This is a FAST TRACK Course and applicable for Nov 23 exams.