Accounts Receivable

These are trade accounts receivable and represent money owed to the company by customers for the services performed or goods sold by credit

Accounts receivable are amounts owed by customers for credit sales or services. They are current assets and require credit policies, collection procedures, and monitoring of aging and allowances.

- Used in the purchase-to-pay cycle to validate invoices, approvals, and supporting documents.
- Used to strengthen internal controls over purchasing and supplier payments.

- Example: Before payment, the AP team applies **Accounts Receivable** to confirm the invoice matches the approved purchase documentation.

- Why it matters: Prevents incorrect/duplicate payments, reduces fraud risk, and improves accuracy of payables and expenses.