Trade and other receivables

Trade and other receivables, numbered 1220, is the group that totals what other people owe the company and will pay within a year: Debtors for unpaid customer invoices, Contract Assets for work done but not yet billed, Advances and Prepayments for money paid ahead, Amounts Due from Customers for Contract Work, Receivable from Related Parties, less the Allowance for Expected Credit Losses. The group total is the receivables line on the Balance Sheet and the base for the Accounts Receivable ageing. In the demo books it fell back to zero once Jivan Dahal paid his invoices. Only the child ledgers take postings, and Debtors in particular needs a customer party on every row.

Trade and other receivables = Debtors + Contract Assets + Advances and Prepayments + Contract Work due + Related party dues - Allowance for Expected Credit Losses.

1. 01Go to Accounts Setup > Chart of Accounts and expand Assets > Current Assets > Trade and other receivables.
2. 02Read the six children; Debtors is the only one with account type Receivable.
3. 03Open Financial Reports > Balance Sheet; the group shows what is owed to the company net of the allowance.
4. 04Open Financial Reports > Accounts Receivable for the customer-by-customer detail behind Debtors.
5. 05Post customer invoices through Sales Invoice; use Journal Entry only for the non-trade children.

Do not post here. Sales Invoices post to Debtors; supplier advances post to Advances and Prepayments.

After Jivan Dahal paid, Trade and other receivables fell back to zero in the demo books.