Streamline invoicing, payment collection and customer records management. Quickly create professional-looking invoices, send payment reminders to customers, and automatically record credit notes or customer payments. Keep track of customer payments and aging accounts with comprehensive reports and detailed visual analytics. Access a comprehensive customer database to store important customer information and generate customized invoices.
Create automated customer payment reminders to help reduce customer delinquency. Automatically generate credit notes or customer payments and view them in real-time. Create multiple payment options for customers and track customer payments through automated workflows. Create payment plans for receivables. Reconcile payments and track customer accounts using an intuitive dashboard. Receive real-time notifications when customer payments are received.
Automate the entire invoicing process from quote to payment, saving time and effort.
Create and send invoices quickly and accurately, saving time and money.
Keep track of payments and overdue invoices easily, improving cash flow.
Key Features of Accounts Receivable
with Deskera ERP.
Deskera Accounts Receivable
What is accounts receivable?
Accounts receivable is an accounting term that refers to the amount of money owed to a company by its customers for goods or services that have been provided on credit. It is often referred to as trade receivables or simply receivables. Accounts receivable is an asset account on a company's balance sheet and represents money due from customers as a result of a sale.
What are the components of accounts receivable?
The components of accounts receivable include the principal amount due, the amount of interest or late fees that may be due, and any discounts allowed. In addition, accounts receivable may include credits issued by the company to customers, such as refunds or adjustments.
How is accounts receivable recorded?
Accounts receivable is recorded in the general ledger as a debit to the accounts receivable account, and a credit to the sales or revenue account. The amount of the receivable is then reported on the balance sheet as an asset.
What is the aging of accounts receivable?
Aging of accounts receivable is the process of categorizing accounts receivable by the length of time a customer's payment has been outstanding. This is often done in 30-day increments, such as 0-30 days, 31-60 days, 61-90 days, and 90+ days.
What is a bad debt?
A bad debt is an amount of money owed to a company that is no longer collectible. This can happen if a customer is unable to pay or if the debt has been written off as a loss. Bad debt is reported as an expense on the income statement and is recorded as a contra-asset account on the balance sheet.
How can a company protect itself from bad debt?
Companies can protect themselves from bad debt by implementing a system of credit checks and customer screening. This can help to reduce the risk of giving credit to customers who are not able to pay. Companies may also require customers to provide a deposit or down payment before extending credit.
What is a write-off?
A write-off is an accounting term that refers to the practice of reducing the value of an asset or liability by the amount of an expense or loss. In the context of accounts receivable, a write-off is the process of reducing the amount of a customer’s outstanding receivable balance, due to the customer’s inability to pay.
How is a write-off recorded?
A write-off is recorded by debiting the accounts receivable account for the amount of the write-off, and crediting the bad debt expense account. This reduces the amount of accounts receivable reported on the balance sheet, and increases the amount of expense reported on the income statement.
What is a collection period?
The collection period is the length of time it takes for a company to collect its accounts receivable. This is an important metric for managing cash flow and is used to measure the effectiveness of a company’s credit and collection policies.
What is a customer credit limit?
A customer credit limit is the maximum amount of credit that a customer can receive from a company. Credit limits are set to ensure that customers do not exceed their ability to pay and to protect the company from bad debt. Credit limits are typically established at the time of sale and can be adjusted as needed."