LOGISTICS BILLING & WORKING CAPITAL

Accounts receivable (A/R)

Also called
Trade receivables
Abbreviation
A/R
Reading time
3 minutes

Accounts receivable records amounts customers owe a business for credit sales of goods or services. For a 3PL, it commonly includes invoiced services that have not yet been settled.

ACCOUNTS RECEIVABLE IN PRACTICE

  1. Invoice the workBill the agreed customer and service basis.
  2. Monitor the balanceTrack open invoices, disputes and due dates.
  3. Reconcile settlementApply payments and authorized credits correctly.

Use the agreed units, actual records and approved procedures for your operation.

A WORKED EXAMPLE

$12,000 billed. $9,000 still open.

A provider invoices $12,000 for agreed services. It then applies a $2,000 customer payment and an approved $1,000 credit note. The remaining open receivable is $9,000. That balance should be reconciled to invoice and payment references; it is not necessarily all overdue. Aging depends on the invoice due dates and the accounting system’s rules for allocating payments and credits.

WHAT THIS MEANS FOR YOUR QUOTE

Agree the requirement before comparing quotes

Use the actual shipment, stock and service requirements. Record the billing unit, included work and responsibility for exceptions.

A LITTLE MORE CONTEXT

Questions about Accounts receivable

Does a receivable mean payment is guaranteed?

No. Collection timing and recovery remain uncertain until settlement.

How is A/R different from A/P?

A/R is money customers owe the business. A/P is money the business owes suppliers.

Does a customer payment always clear the oldest invoice?

Not automatically. Allocation follows payment references, agreements and the accounting system’s rules.

Source & example notes

Microsoft Learn: accounts payable invoice matching.

Sources provide background on the linked topic. Product documentation describes a particular implementation; confirm the rules, contract and procedures that apply to your operation.

Quantities, costs and scenarios are illustrative, not operating targets, approved handling instructions or guarantees. Source guidance reviewed 22 October 2026.

Last updated: · 3PL Hub

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