Accounts Receivable
FinanceDefinition
Accounts Receivable is a financial term that represents the money owed to a company by its customers for products or services already delivered but not yet paid for.
Detailed Description
Accounts Receivable (AR) is a crucial aspect of a company’s balance sheet and one of the main components of working capital management. It encompasses the processes related to raising invoices to customers, tracking outstanding balances, managing credit risk, and ensuring timely collections. Efficient management of AR is essential for maintaining a healthy cash flow and supporting financial stability.
Key Features
- Collection Processes
- Customer Credit Management
- Integration with General Ledger
- Invoice Management
- Reporting and Analytics
Common Modules
Billing and Invoicing
Handles the creation and delivery of invoices to customers.
Collections Management
Streamlines the process of collecting payments from customers.
Credit Management
Assesses and manages customer creditworthiness to minimize financial risks.
Popular Implementations
Oracle E-Business Suite AR
Oracle's AR module is designed to streamline the end-to-end accounts receivable process, enhancing the speed and accuracy of collections.
SAP Accounts Receivable
SAP ERP offers a robust AR module that integrates with financial and controlling modules to provide comprehensive account management.