Accounts Receivable

Track and manage money owed by customers to your business.

Overview

Accounts Receivable represents the amount customers owe you for goods sold on credit.

It helps you:

Monitor outstanding invoices
Track overdue payments
Manage cash flow

What is Accounts Receivable?

When you create a Sales Invoice and payment is not received immediately:

👉 That amount becomes Accounts Receivable

How It Works

Create Sales Invoice
Customer does not pay immediately
Amount is marked as Outstanding
When payment is received → balance is reduced

View Accounts Receivable

To view outstanding payments:

Go to Accounts → Reports → Accounts Receivable
Apply filters if needed:

Customer
Date
Company

Report Details

The report shows:

Customer Name
Invoice Number
Invoice Date
Due Date
Outstanding Amount

Aging Analysis

Accounts Receivable is grouped by aging:

0–30 days
31–60 days
61–90 days
90+ days

This helps you identify overdue payments.

Managing Receivables

Collect Payments

Follow up with customers
Record payment using Payment Entry

Credit Control

Set credit limits for customers
Avoid over-selling on credit

Monitor Overdue Invoices

Focus on invoices past due date
Take action early

Reduce Outstanding

To reduce receivables:

Record payment
Adjust using credit note
Write off small balances (if needed)

Best Practices

Regularly review receivables report
Follow up on overdue invoices
Set clear payment terms
Use credit limits effectively

Common Issues

Invoice still outstanding → Payment not recorded
Wrong balance → Check payment allocation
Overdue not tracked → Verify due date

Example

Customer: XYZ Traders

Invoice: $1000

Paid: $600

Outstanding: $400

Why It Matters

Good receivable management ensures:

Better cash flow
Reduced bad debts
Strong financial control

What Next?

Record payments → Payment Entry
Manage invoices → Sales Invoice
Analyze reports → Financial Reports

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