Accounts Receivable

Overview

Accounts Receivable Report – Business Explanation

The Accounts Receivable report in Dafater is a core financial report that shows how much money customers owe your business and how long those amounts have been outstanding. It helps businesses manage cash flow, control credit risk, and prioritize collections.

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1. What Business Information This Report Provides

The Accounts Receivable report gives a clear, customer-wise view of:

• Outstanding customer invoices
• Total unpaid and partially paid amounts
• How long each amount has been overdue
• Credit exposure for each customer
• Expected incoming cash from customers

In simple terms, it answers the question:
“Who owes us money, how much, and since when?”

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2. When and Why to Use This Report

When to Use It

• During daily or weekly finance reviews
• Before following up with customers for payment
• At month-end or quarter-end closing
• Before approving new credit or sales to a customer
• While planning cash flow and working capital

Why It’s Important

• Ensures timely collection of receivables
• Prevents bad debts and overdue balances
• Supports accurate cash flow forecasting
• Helps enforce customer credit policies

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3. Key Columns and Their Business Meaning

Some of the most important columns in the report include:

• Customer
  Identifies who owes money to the business.

• Invoice Number
  References the specific sales invoice that is unpaid or partially paid.

• Invoice Date
  Shows when the invoice was issued.

• Due Date
  Indicates when payment was expected. This is critical for identifying overdue invoices.

• Invoiced Amount
  The total value of the sales invoice.

• Paid Amount
  The amount already received from the customer.

• Outstanding Amount
  The balance still to be collected. This is the most important figure for collections.

• Ageing Columns (e.g., 0–30 days, 31–60 days, 61–90 days, 90+ days)
  Show how long invoices have been overdue, helping assess payment delays and risk.

• Territory / Salesperson (if shown)
  Helps analyze receivables by market or responsible sales team.

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4. Available Filters and Their Business Purpose

Common filters in the Accounts Receivable report include:

• Company
  View receivables for a specific legal entity.

• Customer
  Focus on a single customer or group of customers.

• Posting Date / Due Date
  Analyze receivables for a specific period.

• Ageing Based On (Invoice Date or Due Date)
  Choose how overdue days are calculated for better analysis.

• Salesperson / Territory
  Evaluate receivables by sales responsibility or region.

• Show Only Overdue
  Quickly identify invoices that require immediate follow-up.

These filters help finance teams focus on the most relevant receivables for action.

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5. How to Interpret the Results for Business Decisions

• High Outstanding Amount for a Customer
  Indicates potential credit risk; consider stopping further sales until payment is received.

• Large Amounts in Older Ageing Buckets (60+ or 90+ days)
  Signals collection issues and possible bad debt risk.

• Consistent Delays from Certain Customers
  Suggests the need to revise payment terms or credit limits.

• Healthy Distribution in 0–30 Days
  Indicates good payment discipline and stable cash inflow.

The report helps management decide where to focus collection efforts and how to manage customer credit.

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6. Common Use Cases and Scenarios

• Finance Team Follow-Ups
  Use the report daily to call or email customers with overdue invoices.

• Management Review Meetings
  Discuss total receivables, overdue trends, and high-risk customers.

• Credit Control
  Check outstanding balances before approving new orders.

• Cash Flow Planning
  Estimate how much cash is expected to be received in the near term.

• Audit and Compliance
  Support financial reporting and receivables reconciliation.

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Summary

The Accounts Receivable report in Dafater is an essential tool for managing customer payments and maintaining healthy cash flow. By clearly showing who owes money, how much is overdue, and for how long, it enables better credit control, faster collections, and more informed financial decisions.

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Report Information

• Module: Accounts
• Related DocType: Sales Invoice
• Report Type: Script Report
• Standard: Yes