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Accounts Receivable Accounts Receivable

Efficiently Manage Customer Payments and Improve Cash Flow
The Accounts Receivable (AR) module in PrismERP is designed to help businesses systematically manage all amounts owed by customers for goods sold or services rendered. It provides a complete solution to handle invoice generation, payment tracking, credit management, and collection processes—ensuring your business maintains healthy cash flow and reduces financial risks.

Understanding Accounts Receivable​

Accounts receivable represents outstanding invoices or money owed to a company by its customers. Proper management of these receivables is critical because it directly impacts liquidity and operational capability. PrismERP’s AR module automates and streamlines these tasks to improve accuracy, reduce manual errors, and speed up cash collection.

Core Functions of PrismERP Accounts Receivable Module​

  • Invoice Creation and Management: Generate accurate customer invoices based on sales orders or contracts. Automatically record invoice details including due dates, amounts, taxes, and payment terms.

  • Customer Information Management: Maintain a detailed customer master database with credit limits, payment terms, contact information, and transaction history to support effective credit control.

  • Payment Recording: Log all incoming payments, whether through cash, cheque, bank transfers, or digital payments, linking them to the relevant invoices to keep balances updated.

  • Aging Analysis: Monitor outstanding invoices by categorizing them into aging brackets (e.g., current, 30 days overdue, 60 days overdue) to identify overdue payments and prioritize collections.

  • Credit Limit Enforcement: Automatically flag customers who exceed their credit limits or miss payment deadlines to mitigate bad debts and financial exposure.

  • Automated Reminders and Alerts: Schedule and send payment reminders or overdue notices to customers, reducing delays and improving collection efficiency.

  • Receipt Management: Maintain records of all receipts issued, both physical and digital, ensuring transparency and audit readiness.

  • Cheque Tracking: Manage received cheques from customers, track their clearance status, and reconcile them with bank deposits for accurate accounting.

  • Adjustments and Write-Offs: Handle credit notes, debit notes, discounts, and write-offs effectively to maintain clean and accurate receivable accounts.

  • Financial Reporting: Generate comprehensive reports including outstanding balances, aging summaries, collection performance, and cash flow forecasts to support informed decision-making.

Benefits of Using PrismERP Accounts Receivable​

  • Improved Cash Flow: Timely tracking and collection of receivables enhance liquidity and fund availability.

  • Reduced Credit Risk: Enforcing credit limits and monitoring overdue payments minimizes the risk of bad debts.

  • Operational Efficiency: Automated invoicing, payment tracking, and reminders reduce manual effort and errors.

  • Enhanced Customer Relationships: Accurate billing and transparent payment histories foster trust and satisfaction.

  • Audit Compliance: Detailed transaction logs and reports support internal controls and regulatory requirements.

  • Better Financial Insights: Real-time data and reports help management plan effectively and optimize working capital.

How Accounts Receivable Integrates within PrismERP​

The AR module is tightly integrated with multiple modules for seamless operations:

  • Sales & Distribution: Invoices are generated directly from sales orders.

  • General Ledger: All receivable transactions update the ledger for accurate financial statements.

  • Cash & Bank Management: Payments and deposits are recorded and reconciled automatically.

  • Customer Relationship Management (CRM): Provides customer insights for better credit decisions.

Streamline Your Receivables with PrismERP​

Efficient accounts receivable management is essential to business success. PrismERP equips your finance team with tools to automate billing, monitor payments, and accelerate collections—helping your organization maintain financial health and drive growth.
Request a Demo to explore how PrismERP’s Accounts Receivable module can transform your cash flow management.