Overview 

Accounts Receivable (AR) and Accounts Payable (AP) track customer dues and supplier payments. iVendNext provides tools to manage them, monitor aging, and maintain cash flow. This guide explains key features of AR and AP management in iVendNext.

1. Overview of Accounts Receivable and Payable in iVendNext

In iVendNext, the Accounts Receivable module helps you track the amounts owed by your customers, while the Accounts Payable module helps you manage the amounts you owe to your suppliers. Both modules provide detailed reports and tools to help you monitor outstanding balances, analyze aging, and ensure timely payments.

2. Accessing Accounts Receivable and Payable Reports

To access the AR and AP reports in iVendNext, follow these steps:

1. Go to the Accounting Section: Navigate to Accounts > Accounting Statements.

2. Select Accounts Receivable or Accounts Payable: Click on the respective option to generate the report.

3. Key Features of Accounts Receivable and Payable in iVendNext

iVendNext provides several features to help you manage AR and AP effectively. Here are the key features:

3.1 Aging Analysis

The AR and AP reports in iVendNext provide aging analysis, which breaks down outstanding amounts based on the period for which they have been outstanding. This helps you identify overdue payments and take appropriate action.

• Aging Buckets: The report categorizes outstanding amounts into different time periods (e.g., 0-30 days, 31-60 days, 61-90 days, etc.).

• Total Outstanding: The report shows the total amount outstanding for each customer or supplier.

3.2 Payment Terms

You can view AR and AP reports based on payment terms. This feature allows you to see outstanding amounts against each payment term, helping you manage cash flow more effectively.

• Invoiced Amount: Shows the amount invoiced for each payment term.

• Paid Amount: Shows the amount paid against each payment term.

• FIFO Allocation: Payments are allocated in First-In-First-Out (FIFO) order, ensuring that older invoices are paid first.

3.3 Multi-Currency Support

For businesses dealing with international customers or suppliers, iVendNext supports multi-currency transactions. The AR and AP reports can handle currency conversion differences, especially when Exchange Rate Revaluation Journals are used.

• Revaluation Journals Filter: This filter ensures that the report accurately reflects outstanding amounts after currency revaluation.

4. How to Use AR and AP Reports for Financial Management

The AR and AP reports in iVendNext are not just for tracking outstanding amounts; they are powerful tools for financial management. Here’s how you can use them:

4.1 Monitoring Outstanding Balances

Regularly review the AR and AP reports to monitor outstanding balances. This helps you identify overdue payments and take action to collect or pay them.

• Follow-Up with Customers: For overdue AR, follow up with customers to ensure timely payment.

• Plan Supplier Payments: For overdue AP, plan payments to suppliers to avoid late fees or strained relationships.

4.2 Analyzing Cash Flow

The AR and AP reports provide insights into your cash flow by showing the amounts you expect to receive (AR) and the amounts you need to pay (AP). This helps you plan your cash flow more effectively.

• Cash Flow Forecasting: Use the AR and AP reports to forecast your cash flow and ensure that you have enough liquidity to meet your obligations.

4.3 Managing Credit Limits

For AR, you can monitor customer credit limits and outstanding balances to ensure that customers do not exceed their credit limits. This helps you manage credit risk effectively.

• Credit Balance Report: Use the Customer Credit Balance report to view credit limits, outstanding amounts, and available credit for each customer.

4.4 Reconciling Accounts

The AR and AP reports can be used to reconcile accounts by matching transactions with invoices and payments. This ensures that your financial records are accurate and up-to-date.

5. Important Points To Remember

To make the most of the AR and AP modules in iVendNext, follow the below points:

5.1 Regularly Update AR and AP Records

Ensure that all invoices, payments, and adjustments are recorded in iVendNext on a regular basis. This keeps your AR and AP records accurate and up-to-date.

5.2 Use Aging Analysis to Identify Overdue Payments

Regularly review the aging analysis in the AR and AP reports to identify overdue payments. Follow up with customers or suppliers as needed to ensure timely payments.

5.3 Monitor Credit Limits

For AR, regularly monitor customer credit limits and outstanding balances to manage credit risk effectively.

5.4 Leverage Multi-Currency Features

If your business deals with international customers or suppliers, use the multi-currency features in iVendNext to manage currency conversion differences and revaluation journals.