Each line declares whether it credits revenue now or deferred revenue on a schedule, and the recognition preview is shown per line before the invoice is issued. The invoice number is system-assigned and gapless — the user cannot pick it.
| Description | Account | Recognition | Amount | Remove |
|---|---|---|---|---|
Credits deferred revenue, recognized over 12 months from 30 Sep 2026. | ||||
Credits revenue on issue. |
2% discount if paid within 10 days, otherwise due in 30 days.
| Subtotal | 15,500 US Dollar |
|---|---|
| California state @ 6% | 930 US Dollar |
| San Francisco district @ 2.625% | 406 US Dollar and 88 cents |
| Total | 16,836 US Dollar and 88 cents |
A credit note is not a refund and not a write-off — three different actions with three different GL and tax treatments, so the form says so before you use the wrong one. Void is offered only while the invoice is unpaid and its period is open.
Balance due
of 1,840 US Dollar invoiced
Northwind Traders
Issued 12 Jul 2026 · due 12 Aug 2026
| 4 Aug 2026 | ACH | 600 US Dollar |
|---|---|---|
| Applied credits | 240 US Dollar | |
| Balance due | 1,000 US Dollar | |
Void is unavailable once a payment has been applied — issue a credit note instead.
Issued INV-2041
Billing (System) · 12 Jul 2026, 10:00 UTC
Applied $600.00 ACH receipt
A. Rivera (Staff accountant) · 4 Aug 2026, 14:20 UTC
A credit note reduces what the customer owes. It is not a refund (which returns cash) and not a write-off (which recognizes a loss). Those are separate actions with different GL and tax treatment.
Against invoice INV-2041, balance 1,000 US Dollar
Invoice numbering has 1 gap (INV-2039). Most tax regimes require an unbroken sequence, and a gap is an audit finding.
Buckets run from the due date, not the invoice date — a 60-day-old invoice on net-90 terms is current, and aging it by invoice date would show a problem that does not exist. The column totals and the grand total tie to the AR control account.
Accounts receivable aging
Row totals and column totals agree with the grand total.
Every case, not the happy path: exact application, partial payment, short pay, lump sum across many invoices, and overpayment. Every difference gets an explicit disposition, and a write-off above the threshold needs approval before it can be taken.
No invoices selected
Northwind Traders
Received 29 Sep 2026 · ref ACH 20260929-4417
4,865 US DollarHeld as a liability until applied. It does not reduce accounts receivable.
Applying is reversible and audited.
No combination of open invoices sums to 4,865 US Dollar exactly.
Unapplied cash is never revenue, and a customer sitting in a net credit position is flagged for reclassification to a liability at period end. Collections is ranked by amount × age × risk, not by age alone. Dunning pauses when a dispute is open — chasing a disputed invoice is how you lose the customer and the money.
1 customer have a net credit balance in AR (Tailspin Toys). Consider reclassifying to a liability at period end.
Next: Final notice before referral on 8 Oct 2026
Pauses if: An open dispute on any invoice in the balance, A promise to pay logged and not yet past its date, An active payment plan.
| Entity | Invoiced | Unbilled orders | Exposure |
|---|---|---|---|
| Fabrikam GmbH | 3,109 US Dollar | 840 US Dollar | 3,949 US Dollar |
| Fabrikam Austria GmbH | 1,275 US Dollar | 400 US Dollar | 1,675 US Dollar |
| Group exposure | 5,624 US Dollar | ||
Tax-exemption certificate expired 30 Jun 2026.
Open-item and full-activity are different statements and the mode is stated. A sales order has no general ledger impact at all — so it renders on a dashed, sunken surface that says so, and never on a statement.
Acme Holdings, Inc.
Customer statement
Northwind Traders
1 – 30 September 2026 · Open items only
| Date | Reference | Description | Charges | Credits | Balance |
|---|---|---|---|---|---|
| Opening balance | 1,840 US Dollar | ||||
| 4 Sep 2026 | PMT-4417 | ACH receipt | 600 US Dollar | 1,240 US Dollar | |
| 18 Sep 2026 | CN-0031 | Credit note — service credit, SLA breach | 240 US Dollar | 1,000 US Dollar | |
| Balance due | 1,000 US Dollar | ||||
Orders have no general ledger impact. These figures are not revenue and do not appear on any statement.
| Order | Customer | Expected ship | Order value | Invoiced |
|---|---|---|---|---|
| SO-1180 | Northwind Traders | 15 Oct 2026 | 12,400 US Dollar | 0 US Dollar |
| SO-1181 | Contoso Ltd | 1 Nov 2026 | 16,000 US Dollar | 4,000 US Dollar |
| Backlog | 28,400 US Dollar | |||
(Accounts receivable ÷ Credit sales) × Days in period
( 1,284,000 ÷ 2,398,000 ) × 90
(Current receivables ÷ Credit sales) × Days in period
( 826,000 ÷ 2,398,000 ) × 90
(Opening AR + Credit sales − Closing total AR) ÷ (Opening AR + Credit sales − Closing current AR)
( 1,140,000 + 2,398,000 − 1,284,000 ) ÷ ( 1,140,000 + 2,398,000 − 826,000 )
Write-offs ÷ Credit sales
( 10,072 ÷ 2,398,000 )