Account receivable (A/R) :
Account receivable (A/R) :
What does this term stand for?
Accounts receivable (AR) refers to the outstanding money owed to a company by its customers for goods or services that have been delivered or rendered on credit but not yet paid for. This amount is recorded as a current asset on the company’s balance sheet because it represents a legal obligation from customers to pay within a short timeframe, typically within 30 to 90 days. In logistics and supply chain operations, accounts receivable directly impacts cash flow and working capital, as it represents near-term expected cash inflows needed to fund ongoing operations such as inventory purchases, carrier payments, and facility costs.
Key Components
- Credit Sales Origin
- Current Asset Classification
- Invoice and Payment Terms
- Cash Flow Impact
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