Definition
Receivable (often referred to as Accounts Receivable or AR) represents the short-term debts owed to your business by customers for rental contracts, equipment sales, or services that have been fulfilled and invoiced but not yet paid.
Key Details
Receivable acts as a primary indicator of your incoming cash flow and outstanding credit extensions.
- System Category: This data is centrally tracked within the Financial and Invoicing modules, directly feeding into your general ledger.
- Aging Buckets: The system automatically categorizes receivables into time-based intervals (e.g., 0–30 days, 31–60 days, 61–90+ days) to help your accounting team pinpoint overdue accounts.
- Credit Safeguards: High or long-overdue receivable balances on a specific customer profile can be set to automatically trigger a Credit Hold, pausing future rental dispatches until the debt is cleared.
- Automated Reconciliation: When a customer payment is processed via credit card, check, or ACH, the system automatically matches the funds to the corresponding invoice, instantly reducing the outstanding receivable balance.
Use Case Example
In practice
A construction firm rents a structural light tower for a three-week project, generating a $1,200 invoice under Net 30 payment terms. The moment that the invoice is finalized, the $1,200 enters your system as an active Receivable. This seamless financial tracking is built directly into the rental software, allowing your team to monitor real-time revenue pipelines without manually updating spreadsheets. Once the customer submits their payment three weeks later, the receivable is cleared, and the funds are officially logged as collected revenue.