What Is Accounts Receivable (AR)?
Accounts receivable (AR) is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivables are listed on the balance sheet as a current asset. AR is any amount of money owed by customers for purchases made on credit.
Accounts receivable is an asset account on the balance sheet that represents money due to a company in the short term.
Accounts receivables are created when a company lets a buyer purchase their goods or services on credit.
The strength of a company’s AR can be analyzed with the accounts receivable turnover ratio or days sales outstanding.
A turnover ratio analysis can be completed to have an expectation of when the AR will actually be received.
JD Edwards EnterpriseOne Accounts Receivable Overview
An accounts receivable department plays an important role in managing the cash flow of a business; it is responsible for processing invoices for goods and services sold to customers of an organization and applying payments from these same customers. In addition, the accounts receivable department might want to track payment information about their customers to gather statistical information about their paying habits. By understanding customers better, businesses can provide better customer support and manage their cash flow better.
The JD Edwards EnterpriseOne Accounts Receivable system from Oracle helps you manage the cash flow with the flexibility for effective cash management. It provides real-time information so that you can make immediate decisions about extending credit, forwarding collections, and applying cash.
With the JD Edwards EnterpriseOne Accounts Receivable system, you can streamline the day-to-day functions of the entire accounts receivable department. You can simplify and accelerate the process of applying receipts and you have up-to-date information that improves communication between the billing and the credit and collections department.
For organizations that have offices around the world, JD Edwards EnterpriseOne software provides the flexibility needed to operate in multiple countries, each with unique currency, language, and statutory requirements.
