Sequential Liability Terms and Definitions
Term |
Definition |
---|---|
A/P |
Accounts payable. These are accounts that are payable to your vendors. Accounts payable can be entered and tracked in vendor bills and vendor credits. |
A/R |
Accounts receivable. These are accounts that are receivable from your customers. Accounts receivable can be entered and tracked in customer invoices and credit memos. |
A/P balance |
This is also known as payable balance. It is the total amount payable to your vendors for a project. The A/P balance is computed as the total of all vendor bills entered for a project minus bill payments and vendor credits. |
A/R balance |
This is also known as receivable balance. It is the total amount receivable from your customers for a project. The A/R balance is computed as the total invoice amount minus customer payments and credit memos. |
Vendor bill |
A vendor bill is a transaction that records payables as they arrive from vendors. |
Vendor credit |
A vendor credit is a transaction that creates credit from a vendor that can be applied to a payables account. This is also known as bill credit. |
Customer invoice |
A customer invoice is a transaction that creates a bill for goods and/or services sold to a customer for which payment is not received at the time of delivery. |
Credit memo |
A credit memo is a transaction that can be used to reverse a charge billed to a customer. |
Bill payment |
A bill payment is a transaction that records payment to a vendor. Bill payments are applied to vendor bills. |
Customer payment |
A customer payment is a transaction that records payment from a customer. Customer payments are applied to customer invoices or cash sales. |