Receivables, Payables & Credit/Debit Notes

2. AR Payments and Receivables Aging

Recording receipts

AR Payments (ARPaymentsPage) record money received from customers and use an apply-to-invoice flow. Rather than a payment floating unallocated, it is applied against one or more outstanding invoices, which is what reduces the open invoice balance. Partial payment is supported, so a single invoice can be settled in stages and a single receipt can be allocated across invoices.

Aging by customer

AR Aging (ARAgingPage) reports outstanding receivables organised by customer. Aging groups unpaid balances by how long they have been outstanding, which highlights which customers owe money and how overdue each amount is. This is the primary collections tool, showing at a glance where follow-up is needed.

How the pieces connect

The receivables cycle links the customer master, the invoice, the payment and the aging view into one flow. An invoice raised against a customer creates an open balance; an AR payment applied to that invoice reduces the balance; and anything still unpaid appears on the AR Aging report under that customer. Because AR invoices also post an automatic journal entry, the receivables sub-ledger stays consistent with the General Ledger. A typical workflow is to receive a customer payment, apply it to the specific open invoices it covers, and then use AR Aging to review whatever remains outstanding and prioritise collections accordingly.