Not-yet-due receivables

Outstanding balances include invoices that have been issued but are not yet due. The customer is therefore not past due.

Example

An invoice for €6,000 issued on March 1, payable in 45 days, remains unpaid until mid-April. It is included in the outstanding balance but not in the overdue balance.

Why It’s Important

These amounts indicate the cash inflows for the coming weeks: they are used to forecast cash flow. We can also take action before the due date—by sending a polite reminder—to prevent these payments from becoming overdue.

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

See also: past-due balances, actual balances, payment schedule.