A/c Receivable (Customer)

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At A/c Entry, the highlighted area consists of the Accounts Receivables(Customer) sub-modules

Customers may be an individual  or corporate entity that purchases (your sales of...) goods and services from your company.

You may want to maintain the customers' profile in your system for

1) accounting record keeping purposes


2) for information purpose only, with no accounting entries posted to these accounts

Under situation 1) when you issue your invoice on credit terms (for goods and services delivered), you need to enter into the Sales Journal to recognize as current asset (Trade Receivables) of goods sold and/or services rendered. (Accrual basis accounting) The double entry would be to
         Credit the sales(Income),
         Credit tax (if any) and
               Debit the Trade receivables    
in the general ledger (or other receivables account)

Sales Journal

-  For service invoice , sale invoice entry to debit the customer
  and credit the sales
-  Receipt - Cash book entry to enter payment made by customer to your company
-  Customer Debit Journal - Debit Note generated to your customer
-  Customers' Credit Journal - Credit Note generated to your customer

Full settlement, partial settlement, advance payment, with discount, bank charges, contra


Customer Debit Journal

1. For additional charges that is not part of business activities, example bill on behalf , freight borne by customers

2. For adjustments to customer's balances, (reversal of credit balances, cents adjustments)

3  Audit adjustments.


Customer Credit Journal

1. For rebates, discounts allowed

2. Adjustments to customer's balances (Provision of Bad debts, cents adjustments)

3. Audit adjustments (Write off, write down)
Next, go to the next topic of Customers' Opening balances


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