Accounts Receivable

Benzinga  Aug 17  Comment 
KeyCorp (NYSE: KEY) has made an equity investment in the New Jersey-based fintech company Billtrust, which offers cloud-based payment cycle management solutions. KeyBank is launching an accounts receivable platform, KeyTotal AR, in conjunction...
The Economic Times  Jul 18  Comment 
In this role, Sriram will be heading all commercial, accounting, tax, compliance, receivables, and payables related activities.
Benzinga  Jun 30  Comment 
Even after reporting strong fourth-quarter earnings, Jefferies analyst Greg Konrad does not like American Outdoor Brands (NASDAQ: AOBC)'s future outlook. The analyst has a Hold rating on the stock with a $23.94 price target. A Look Back At...
The Hindu Business Line  Jun 18  Comment 
Expects ₹3,000 cr worth Bills to get discounted this fiscal in Trade Receivable exchange
The Hindu Business Line  Jun 16  Comment 
Bharat Financial Inclusion (formerly SKS Microfinance) on Friday assigned a pool of receivables of an aggregate value of ₹539.67 crore to one of the largest public sector banks on direct assignment b...
The Economic Times  May 31  Comment 
The group said it has Rs 1.377 crore receivables from various state electricity utilities for sale of power.
The Economic Times  May 24  Comment 
RBI has decided to come out with TReDS to take the entire bill discounting process online.
Forbes  May 23  Comment 
For online retailer Wiggle, a specialist in athletic gear for triathletes, Oracle ERP Cloud offers around-the-clock access to up-to-the-minute information about ledgers, payables, and receivables.
TechCrunch  May 12  Comment 
 If your company works with big clients, you might want to be able to predict what’s going to happen with your company’s bank account. YayPay is introducing weather forecasts, but for your unpaid invoices. This way, you know if it’s safe to...


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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