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Accounts Receivable

Accounts Receivable is a Subledger in which all credit sales are recorded upon creation of Invoices for products or services. In Financial Reporting Accounts Receivable is the amounts due from customers who have purchased products or services on credit. The amount in reported in Accounts Receivable represents the unpaid portion of invoices.

The primary document recorded in the Accounts Receivable ledger is the customer invoice. Credits issued to customers Credit Notes are also recorded in the Accounts Receivable ledger. Debits for additional amounts are recorded as Debit Notes or separate invoices.

A typical entry in the Accounts Receivable includes:

  • Invoice number
  • Invoice date
  • Invoice due date
  • Customer number or name
  • Product or service item number, SKU or name
  • Total amount
  • Sales tax amount - if applicable
  • Payment status

The total amount in Accounts Receivable allowed to an individual customer is typically limited by a credit limit, which is set by the Seller's credit department, based on the Seller's assessment of t:Risk.

Process(es)

IDNameLevelx
S408Settle Return3S408
D105Invoice3D105
D205Invoice3D205
D306Invoice3D306

Metric(s)

IDNameLevelx
AE11Days Receivables Outstanding2AE11
AE111On-time Receipts Ratio3AE111
AE112Late Receipts Ratio3AE112
AE113Uncollectable Receivables Ratio3AE113

Term(s)

IDNameClearx
FactoringAccounts Receivable FactoringFactoring
CSFPStatement of Financial PositionCSFP
WCWorking CapitalWC
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Statement Of Financial Position Days Receivables Outstanding On-time Receipts Ratio Late Receipts Ratio Uncollectable Receivables Ratio