Payables and Receivables
FinanceDefinition
Accounts Payable and Accounts Receivable are financial processes dealing with a company's debts and income from customers.
Detailed Description
Payables and Receivables are critical components of a company’s financial operations within an ERP system. Accounts Payable (AP) refers to the money owed by a business to its suppliers shown as a liability on the company's balance sheet. Conversely, Accounts Receivable (AR) represents money that customers owe the business for goods or services delivered. Effective management of AP and AR is essential for maintaining a healthy cash flow, ensuring timely payments, and optimizing the financial performance of the company.
Key Features
- Aging Analysis
- Credit Management
- Customer Billing
- Invoice Management
- Payment Processing
- Vendor Management
Common Modules
Accounts Payable Module
Handles the processing, payment, and management of company debts and obligations to suppliers.
Accounts Receivable Module
Manages incoming payments, customer billing, and debt collection efforts to ensure cash inflow.
Popular Implementations
ERPNext Payables and Receivables
ERPNext provides modules for managing both accounts payable and accounts receivable as part of its comprehensive finance suite, offering integrated workflows and reporting for better financial management.