Customer outstanding balance

Accounts receivable is the total of all invoices issued to a customer that have not yet been paid, whether or not they are past due.

Example

A customer received four invoices: €10,000, €5,000, €8,000, and €2,000. The customer paid the first one. The customer’s outstanding balance is €15,000, part of which may already be past due.

Why It’s Important

Outstanding balances measure the amount of money you are owed and the risk associated with each customer. Compared to the credit limit, they indicate whether it is safe to continue supplying that customer.

To learn more: Everything you need to know about accounts receivable.

See also: past-due balances, current balances, actual balances, credit limit.