Accounts Receivable Summary
Overview
Below is a business‑focused explanation of the Accounts Receivable Summary report, written for practical use within Dafater.
Accounts Receivable Summary – Business Explanation
What Business Information This Report Provides
The Accounts Receivable Summary shows how much money customers owe the business at a specific point in time. It gives a summarized view of outstanding sales invoices, helping management understand the total receivables, overdue amounts, and customer‑wise balances.
This report answers key business questions such as: - How much money is expected from customers? - Which customers have the highest outstanding balances? - How much of the receivables are overdue?
When and Why to Use This Report
You should use this report when: - Reviewing cash flow and working capital position - Following up on unpaid customer invoices - Monitoring credit exposure and overdue receivables - Preparing for month‑end or quarter‑end financial reviews - Supporting collection planning and customer credit decisions
The report is especially valuable for finance teams, management, and sales leaders who need visibility into customer payments and risks.
Key Columns and What They Mean for Business
Common columns in the report include:
Customer
Identifies the customer who owes money to the business.Outstanding Amount
The total unpaid amount from the customer. This represents expected cash inflow.Invoiced Amount
Total value of sales invoices issued to the customer during the selected period.Paid Amount
Amount already collected from the customer against those invoices.Credit Note / Return Amount
Any reductions due to sales returns or credit notes.Ageing Buckets (e.g. 0–30, 31–60, 61–90, 90+ Days)
Shows how long invoices have been outstanding. Older balances indicate higher collection risk.
These columns help identify both the size and quality of receivables.
Available Filters and Their Business Purpose
Commonly used filters include:
Company
View receivables for a specific business entity.Customer
Analyze outstanding balances for a single customer.Posting Date / As on Date
See receivables as of a specific date, useful for period‑end reviews.Customer Group
Compare receivables across different customer segments.Territory / Sales Region
Assess receivables performance by geographic or sales areas.Ageing Based On (Invoice Date or Due Date)
Choose how overdue amounts should be calculated for better credit control.
These filters allow focused analysis and targeted decision‑making.
How to Interpret the Results for Business Decisions
High Total Outstanding
Indicates strong sales but may signal cash flow pressure if collections are slow.Large Overdue Amounts
Suggest collection issues or customers facing financial difficulties.Concentration in Few Customers
Highlights credit risk if a large portion of receivables depends on a small customer base.Increasing Ageing Trend
Signals the need to tighten credit terms or strengthen follow‑up processes.
Management can use this insight to prioritize collections, adjust credit policies, or engage with customers proactively.
Common Use Cases and Scenarios
Daily or Weekly Collection Review
Finance teams use it to plan follow‑ups with customers.Credit Control Meetings
Management reviews overdue balances before approving new sales on credit.Month‑End Closing
Ensures receivables are accurate and aligned with financial statements.Sales Performance Analysis
Sales managers track whether invoiced sales are being converted into actual cash.Customer Negotiations
Used during discussions on payment plans or credit limit revisions.
Summary
The Accounts Receivable Summary is a critical financial control report in Dafater. It provides clear visibility into customer dues, supports cash flow management, and helps the business reduce payment delays while maintaining healthy customer relationships.
Report Information
- Module: Accounts
- Related DocType: Sales Invoice
- Report Type: Script Report
- Standard: Yes