Receivable

A receivable is the right to receive a sum of money. For a business, it is most often an invoice issued to a customer that has not yet been paid.

Example

An agency delivers a website and bills the client €12,000. Until the client has paid, the agency is owed €12,000 by the client.

Why It’s Important

A receivable is not yet money in the bank. If it is not collected, it can become doubtful and then uncollectible. Receivables management is at the heart of the collection process.

For more information: The Guide to Debt Collection Software.

See also: accounts receivable, assignment of receivables, allowance for doubtful accounts.