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
You may also be interested in these articles
Mastering Logistics Warehouse Management for Enterprise Supply
Introduction For huge businesses, managing a logistics warehouse is no longer a...
What Is Logistics Outsourcing? A Comprehensive Guide
Introduction ion to s Logistics outsourcing is a strategic lever for B2B...
Logistics Cost Reduction: Strategies & Challenges for
Introduction Over the past few years, the cost of logistics has changed...
Can't find what you're looking for?
Our logistics experts are here to help answer any questions about
shipping, customs, or supply chain terminology.
