Debtors

Debtors, with account type Receivable, is the ledger that holds every unpaid customer invoice. A Sales Invoice debits it for the grand total including VAT, a Payment Entry Receive credits it when the customer pays, and a credit note credits it when goods come back. Every row carries the customer as party, so the one account can be read per customer, aged by due date and reconciled to customer statements. The demo invoice ACC-SINV-2026-00004 debited it Rs 36,160 and Payment Entry ACC-PAY-2026-00001 cleared it the same amount. A Journal Entry to Debtors without a party is refused. Dead balances are provided for in the Allowance for Expected Credit Losses and finally written off.

Debtors balance = Opening dues + Sales Invoices (incl. VAT) - Receipts allocated - Credit notes - Write-offs.

1. 01Go to Invoicing > Sales Invoice > New and pick the customer; Debtors fills from the company default.
2. 02Add the items and Submit; the entry above posts for Jivan Dahal.
3. 03When paid, open the invoice, click Create > Payment and Submit the Payment Entry; Debtors is credited Rs 36,160.
4. 04Open Financial Reports > Accounts Receivable to see each customer's open invoices and ageing.
5. 05Open Financial Reports > General Ledger with Account = Debtors and Party = Jivan Dahal to read his statement.

Posted automatically when a Sales Invoice is submitted, and cleared by Payment Entry. Never post here by Journal Entry without a customer party.

Sales Invoice ACC-SINV-2026-00004: Dr Debtors Rs 36,160, Cr Sale of Goods Rs 32,000, Cr VAT Payable Rs 4,160 for Jivan Dahal.