What is A/R

  • 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 😛

    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.


    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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