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title: "Introduction to Accounts Receivable."
canonical: "https://kb.myframeworks.com.au/space/PROSTIXV48DOC/31101221/Introduction%20to%20Accounts%20Receivable."
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ProStix is designed to capture information as and when the transaction is taking place. This information is stored and is used by all of the modules within ProStix eliminating the duplication of effort in typing information into separate systems for Inventory, Debtors and Creditors Controls and the General Ledger.   A typical business selling products has an established and variable customer base. It sells products to its customers and because delivery usually occurs before payment is received, the business has a short-term debt owing to it. This debt, which is usually an asset, is commonly called  Accounts Receivable . The customer subsequently makes payments to the business to pay off this debt. Accounts Receivable provides you with effective debt management, ensuring that cash flow is optimised and that your company's overall balance sheet remains healthy. It is simple to use, yet extremely flexible, having the ability to cope with a variety of customer specific requirements. Automated credit control facilities enable you to reduce outstanding debts. Comprehensive enquiry and reporting give you instant access to summary and activity information. Drill down through multiple levels of detail to allow you to track and manage sales information in a way that is totally suitable to your business operation. Flexible and functional, it provides complete control over your receivables by providing the necessary information required to make accurate and timely decisions. The roles performed within an Accounts Receivable system are:  To record customer information and keep it up to date To record sales made to that customer To record payments received from each customer To make enquiries in relation to customer account status To monitor the status of delinquent customers This guide provides participants with the knowledge and skills to perform the Accounts Receivable role within an organisation. It is assumed that you have gained a basic understanding of the tasks involved in the Accounts Receivable role of an organisation, that is, the granting and maintaining of credit to customers (debtors) in order that they may use this credit to trade with your organisation. This area is vital to the functioning of an organisation as failure to manage debtors credit can cause substantial losses.  The guide is an integrated example of both General Ledger and Subsidiary Ledger accounting. While desirable, it is not assumed that principles and procedures for General Ledger accounting have been studied prior to the undertaking of this course. By the end of this guide, you will be able to define terms relating to the Accounts Receivable role in an organisation and perform the tasks associated with this role. Topics covered in this guide are:  Terminology specific to Accounts Receivable Searching for a debtors account Creating a debtors account Maintaining a debtors account The concept of batch processing The types of transactions to a debtors account Answering enquiries about a debtors account Creating reports and analysing their information  Customers - Cash and Account The difference between cash and account customers is that account customers are ones to whom credit is offered. Both cash and account customers may have their goods delivered. Refer to  Introduction to Customer Credit.   for further information about extending credit to account customers.