Debtors and Accounts Receivable

A debtor is someone who owes you money, normally because you have invoiced them for goods or services supplied. The invoice details what they owe and why. The process of managing debtors is often referred to as Accounts Receivable.

Note: This chapter does not apply to MoneyWorks Cashbook which does not support debtors.

Operating a Debtors ledger involves up to 5 distinct processes:

  • Enter the Sales Invoices
  • Post the Invoices to update the balances in the debtors ledger and the general ledger
  • Print/email Invoices and send them to customers
  • Process Debtor Receipts when the debtor makes payment. This updates the balances in the debtors ledger and the general ledger
  • Optionally Print/email and Age Statements

These processes are described in this section.

Sending Invoices

When you provide some goods or services to a customer you normally expect to be paid. Sometimes the customer will pay immediately, in which case you treat the transaction as a Cash Sale — see Entering Receipts. On other occasions you will give the customer an invoice indicating how much is to be paid and he or she will pay at some future date. In this situation you would use the debtors ledger to record the transaction as a Sales Invoice.

Note: In MoneyWorks Gold, if you recorded the sale using a Sales Order and processed it using the Ship command, you do not need to enter the invoice again—the invoice will have been automatically created for you when you shipped the goods — see Shipping Goods.