Statement of outstanding invoices9/8/2023 Terms Similar to Statement of AccountĪ statement of account is also known as an account statement. It is also generally issued immediately after month-end, when it interferes with the monthly closing process. The utility of the statement of account is questionable, since it requires some accounting staff time to create, as well as postage costs, and may be ignored by recipients. Disadvantages of the Statement of Account They are most effective when issued within an email with a payment link, so that customers can pay at once with a credit card. Advantages of the Statement of AccountĪ statement of account is used as a collection tool, reminding customers of the amounts they owe to the issuer. In rare cases, the presence of large credits on a statement of account may reveal that the seller owes money to the customer, in which case a payment or ongoing credit is arranged. Depending on the accounting software, it may be possible to adjust the durations of these time buckets. The time buckets typically used are 0 to 30 days, 31-60 days, 61-90 days, and 90+ days. The amount of invoices listed on the statement may be itemized into time buckets, so that the reader can easily determine which invoices are overdue for payment, and which are not yet due. There may also be a block on the statement, in which is noted the contact information for the seller's collections staff, in case the recipient wants to contact them to discuss the information on the statement. The slip usually contains a mail-to address, the customer name, and a block in which to fill in the amount being paid. There will be a list of all the unpaid invoices from all of the cases this. This is the total amount payable to the seller.Ī payment slip on the bottom of the page that can be torn off and used as a remittance back to the seller. After selecting a contact, you will be able to start building the account statement. The net remaining balance of all transactions listed. The payment date and total amount of each payment received by the seller during the time period. The credit number, credit date, and total amount of each miscellaneous credit issued to the customer during the time period. The invoice number, invoice date, and total amount of each invoice issued to the customer during the time period. A sample statement of account usually includes the following information: The statement is usually a printed document, but may also be sent electronically. The purpose of the statement is to remind a customer of sales on credit that have not yet been paid to the seller. An example is a statement sent to a customer, showing billings to and payments from the customer during a specific time period, resulting in an ending balance. A statement of account is a detailed report of the contents of an account.
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