Accounts Receivable

RECENT NEWS  Apr 2  Comment 
ORCO Germany S.A.: Acquisition of Sunani Hvar receivables DGAP-News: ORCO Germany S.A. / Key word(s): Acquisition ORCO Germany S.A.: Acquisition of Sunani Hvar receivables 02.04.2014 /...
DailyFinance  Mar 31  Comment 
Community Health Systems, Inc. (the “Company”) (NYSE: CYH) announced today that its wholly owned subsidiary, CHS/Community Health Systems, Inc. (“CHS”), and certain of CHS’ subsidiaries have entered into amendments...
DailyFinance  Mar 28  Comment 
NEW YORK, NY -- (Marketwired) -- 03/28/14 -- Finacity Corporation ("Finacity") announced today that it has facilitated the successful closing of a global trade receivables securitization program for Archer Daniels Midland Company ("ADM")...
FX Street  Mar 21  Comment 
Exporters are forward selling their near term receivables on rise due to media hype rupee could... For more information, read our latest forex news and reports.
The Economic Times  Mar 19  Comment 
The Reserve Bank on Wednesday sought feedback from market participants on its concept paper on trade receivables and credit exchange, or TCE.
DailyFinance  Mar 18  Comment 
BOCA RATON, FL -- (Marketwired) -- 03/18/14 -- Novation Holdings (OTCQB: NOHO) today announced that its controlled subsidiary, Focus Gold Corporation (OTCQB: FGLD) , has reported a net operating profit from its two controlled operating...
OilVoice  Mar 7  Comment 
STW Resources Holding Corp. OTCQB STWS announced that it completed 6 million in new financing to meet its accelerating growth. Black Pearl Energy an entity controlled by STW Resources CEO Stanley
DailyFinance  Mar 6  Comment 
OGDEN, UT -- (Marketwired) -- 03/06/14 -- TAB Bank is pleased to announce it has provided a $10 million senior revolving credit facility for a wholesale distribution company located in the Southeast. The company is a distributor of...
DailyFinance  Mar 5  Comment 
HIRAM, GA -- (Marketwired) -- 03/05/14 -- Labor SMART, Inc. (OTCQB: LTNC) (the "Company"), an emerging provider of on-demand blue collar staffing primarily in the southeastern United States, today announced that the company has secured more...  Feb 28  Comment 
NEW YORK (TheStreet) -- Citigroup CEO Michael Corbat minced no words after his firm announced that its Mexican subsidiary, Banco Nacional de Mexico, commonly called Banamex, lost about $400 million as a result of receivables fraud."I can assure...


Accounts receivable are money owed to a business by its customers from goods or services sold that have not yet been paid for.

Accounts receivable (alternately "receivables") are created when a customer purchases goods or services from a company but does not pay for them at the time of purchase. Instead, the company issues an invoice for the goods or services at a later date, often at the end of the month. The amount due on the invoice is considered accounts receivable for the company. Receivables are treated as current assets on a company's balance sheet. Receivables are entered into a company's books when they receive an invoice for a good or service provision (and not before), as the invoice proves that money is legally owed to the company by an outside entity.

Receivables are typically issued by companies to reliable customers, since they are selling their goods on credit.


A car dealer buys five cars from Ford Motors but does not pay for the cars at the time of purchase. When Ford issues an invoice to the buyer, Ford also creates an accounts receivable entry on its balance sheet. The accounts receivable are settled once the dealer pays Ford in full for the cars.

For the car dealer, the invoice represents accounts payable, or money they have to pay to another company for already purchased goods or services. When the dealer pays Ford Motors, Ford then converts its accounts receivable to cash on its balance sheet.

Entry at the Time of Issue Invoice:

Car Dealer A/c Dr.

  To Sales A/c Cr.
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