What is A/R

  • Anonymous August 31, 2018 at 5:14 am

    Really sorry if this is going to sound like a dumb question, but what is A/R??

    Couldn’t find the answer in the acronyms page 😛

    Benjamin August 31, 2018 at 10:13 am

    AR is accounts receivable. The customers owe you money. This is for B2B (business to business) customers with a good relationship. You can use AR to complete (invoice out) transaction without receiving payment and collect the payment later. You can also charge interest on AR.

    https://www.investopedia.com/terms/a/accountsreceivable.asp

    Store credit (accounts payable) is opposite, you owe customer money. Store credit is used for sales return without giving customer money back.

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