Calculation of the Ending Accounts Receivable Balance
Know how the Ending Accounts Receivable Balance is calculated
If you're viewing a single currency, the Accounts Receivable Ending Balance is calculated as follows:
Ending Accounts Receivable = Starting Accounts Receivable + Transactions that impact Accounts Receivable in the accounting period
If you're viewing balances in Consolidated View, the Accounts Receivable Ending Balance is calculated as follows:
Ending Accounts Receivable = Starting Accounts Receivable + Transactions that impact Accounts Receivable in the accounting period + Subtotal Foreign Currency Exchange Gains / Losses + Total Accounts Receivable Transaction Rounding Differences + Total Gains / Losses Rounding Differences
Changing currency settings (for example, updating the rounding increment from 0.01 to 0.05) does not affect invoices and other documents that have already been generated. This can lead to issues such as unexpected Accounts Receivable balance calculations. Payment application calculations may also be impacted, and applying payments using the new currency settings to existing documents may fail.
The Starting Accounts Receivable balance is rolled forward from the previous accounting period. That is, the Ending Accounts Receivable balance from one accounting period is the Starting Accounts Receivable balance for the next accounting period.
The transaction types that impact Accounts Receivable are listed in the following table. The table also shows whether each transaction type increases ( + ) or decreases ( - ) the Ending Accounts Receivable balance.
|
Transaction Type |
Impact on Ending Accounts Receivable Balance |
|---|---|
|
Invoices (tax included) |
+ |
|
Debit Memos (Only available if you enable the Invoice Settlement feature) |
+ |
|
Credit Memos (Only available if you enable the Invoice Settlement feature) |
- |
|
Payments |
- |
|
Overpayment |
- |
|
Invoice Payment Refunds |
+ |
|
Credit Balance Refunds |
+ |
|
Refunds against Unapplied Payments (Only available if you enable the Invoice Settlement feature) |
+ |
|
Refunds against On-Account Credit Memo (Only available if you enable the Invoice Settlement feature) |
+ |
|
Invoice Item Adjustments (Credit) |
- |
|
Invoice Item Adjustments (Charge) |
+ |
|
Invoice Adjustments (Credit) |
- |
|
Invoice Adjustments (Charge) |
+ |