Accounts receivable
In Arabic الذمم المدينة
The money customers owe a business for goods or services already delivered and invoiced but not yet paid.
In plain words
For a distributor selling on credit, receivables are often the largest current asset after stock. Each customer has a balance: invoices raised, less payments received and credit notes issued.
Receivables are managed by watching how long each invoice has been due, sending statements, and holding back further credit when a customer falls too far behind.
The common mistake is recording payments without setting them against invoices. The balance is right, but nobody can tell which invoices are still open or how old they are.
- Opening balance
- SAR 12,000
- Invoices
- + SAR 8,500
- Payments
- − SAR 9,000
- Credit note
- − SAR 500
- Closing balance
- SAR 11,000
In Axon Suite
How Axon Suite handles it
Receivables in Axon Suite hold customer invoices, credit notes, payments, refunds and statements, and the aging buckets every open invoice by its due date.
Feature
Aging and party statements
Aging buckets every open invoice and bill by its due date. A statement gives one customer or vendor their running balance with the same aging beneath it, printed in Arabic or English.
Open: Aging and party statements