Accounts receivable
The function and ledger that tracks what a business is owed by customers — customer invoices, payments, and credit management.
Accounts receivable (AR) is the function and the ledger that tracks what a business is owed by its customers. In Business Central and Dynamics 365 Finance, AR transactions are created by posted sales invoices and credit memos and settled by customer payments applied through cash receipt journals or bank reconciliations. Standard AR features include payment terms, customer credit limits, finance charges, reminder letters, customer statements, payment discounts, and ageing reports. AR entries post simultaneously to the customer ledger and the general ledger. The AR function is often paired with credit and collections workflows for chasing overdue balances.