Accounts Receivable overview
Automates invoicing, collections, payments, and reporting to improve cash flow, reduce risk, and ensure financial accuracy
The Accounts Receivable (AR) process is the backbone of managing customer payments, ensuring healthy cash flow, and mitigating financial risk. It comprises end-to-end activities from invoice creation to payment application and risk assessment.
Zuora provides a comprehensive set of capabilities that automate the end-to-end Accounts Receivable (AR) process. These capabilities not only streamline invoicing, collections, and payments, but also integrate with financial reporting to function as an enterprise-level AR subledger.
Invoice management
Invoice management ensures that accurately and consistently.
Invoice presentation allows companies to standardize how invoices are issued. Standard templates can be configured for billing documents, while e-invoicing supports digital delivery for efficiency and compliance.
Invoice operations cover how invoices are managed once they are created. Delivery preferences can be set for customers, and a variety of operational use cases are supported, including:
Invoice Cancellation: Cancel invoices that have already been posted.
Invoice Deletion: Remove invoices that were created incorrectly.
Invoice Reversal: Reverse invoices in cases where corrections are needed.
Invoice Edits: Make updates such as adjusting invoice dates.
Invoice Consolidation: Combine multiple invoices into a unified one.
Invoice Splits: Divide a single invoice into multiple invoices.
Invoice Write-Offs: Write off balances that are deemed uncollectible.
For more information, refer to Bill your customers.
Collections operations
Collections capabilities help businesses follow up on outstanding payments. This includes monitoring overdue balances, initiating customer communication, and tracking promises to pay. These tools ensure that organizations improve collection efficiency and reduce the risk of bad debt.
For more information, refer to Zuora Collections.
Recording payments
When customers make payments, they are recorded and reconciled against invoices. This step ensures accurate tracking of what has been paid versus what remains outstanding. Payment recording also references and integrates with existing payment capabilities for seamless cash management.
For more information, refer to Zuora Payments.
Invoice settlement/cash application
This step focuses on applying payments against open invoices. Payments can be matched to outstanding balances, managed when they arrive without clear invoice references, and applied once reconciled. Effective settlement reduces discrepancies and ensures accurate receivable balances.
For more information, refer to Invoice settlement.
Accounting and financial automation
The AR process is tightly integrated with accounting and reporting through automation. This includes:
Sub-Ledger and Chart of Account Management: Provides detailed visibility into AR activity.
Period End Close: Streamlines financial close processes.
Multi-Currency Support: Enables global operations with accurate currency handling.
Journal Entry Management: Ensures that AR transactions are accurately reflected in the general ledger.
For more information, refer to Zuora Finance.