What is Accounts Receivable?
As per Wiki
Accounts receivable is a legally enforceable claim for payment held by a business for goods supplied and/or services rendered that customers/clients have ordered but not paid for. These are generally in the form of invoices raised by a business and delivered to the customer for payment within an agreed time frame.
In simple terms, accounts receivable ledger consists of the list of debtors to whom we have rendered a service or supplied goods along with details like invoice number, date of invoice, date wise payments received and outstanding receivables from a particular client or all in general.
Let me share the basics of how I created this template.
Row 1 = Enter Company/Business Name. Cells A1 to K1. Merged cells.
Row 2 = Heading of the sheet. Cells B2 to K2. Merged cells. Headings can be put as Accounts Receivable Ledger or Debtors Ledger.
Row 3 = Multiple headings as numbered below
- The subheading for the Current Date in cell A3.
- Next cell B3 will reflect the current date of the system using the formula =TODAY(). The date will automatically change according to the system date. You don’t need to change it every time and this saves your time.
- The subheading for Total Receivable in E3.
- In F3, the total receivable amount to date is displayed from the data below. The formula used here is =SUM(F5: F23).
Row 4 = This row consists of subheadings for data input. For example, see the table below:
Invoice Date, Invoice number, Customer name, Total Amount of Bill, payment 1 and payment 2 and their respective date are details to be put while entering data.
For the Due date, you can set a function that automatically calculates several days for you and show the exact date of payment. For this, you need to set a function like this = cell address which contains date + Number of days for allowed. Here in our sheet, it is 60 days. So the formula entered is =A5+60. Copied to all cells below by simple copy-paste, this will apply the same settings to all cells below.
Balance here is calculated by deducting the total amount of invoices for our customers – Sum (Payment1 + payment2) etc. In this template formula used is
If you have any queries or questions, share them in the comments below and I will be more than happy to help you.