In the Debt menu, you can see all the AR and AP from your unpaid transactions. AR (Account Receivable) is a list of customers who have outstanding debts for the sales transactions we have made and AP (Account Payable) is a list of suppliers from whom we still have outstanding debts for the purchases we have made.

When we create a Customer invoice and Supplier Bill with Payment set to be Later, the customer's and supplier's names will be recorded in the AR and AP list automatically. In certain conditions, we might not want to record the Debt from the Customers if the Fulfillment status from the products that we Sold is set to be later or if we want to record our Debt to Suppliers before the products are received.

To make the AR/AP list record based on the Fulfillment status from the Customer invoice and Supplier bill, you can follow the steps below:

I. How to Configure

Step 1. Go to menu Setup, click on More menu, and click Module

Step 2. Click the Debt tab in the Module

In this Debt tab, you can choose whether the AR and AP calculation is Before Received or After received.

for example, If you set the calculation as After Receive in the AR Calculation, the Debt from customers will be not recorded into the Account Receivable in the Debt menu until the products from the unpaid Customer invoices are sent to the customer

II. How the Configuration Works

Step 1. Change the default configuration from the AR Calculation as After Received and click the Save button

Step 2. Create a Sales transaction in the Sell menu, set the Payment and Fulfillment as Later

Step 3. Go to the Debt menu, choose the Account Receivable Tab, and search for the Customer name that has the unpaid transactions as created in the previous step

The customer will not be Shown in the Debt - Account Receivable menu because the Fulfillment from unpaid transactions from that customer is set to be later. The Account Receivable will be shown if we sent the Products from that unpaid customer invoice

Step 4. Send the products from the previous unpaid customer invoices in the Orders menu

Step 5. Go to the Debt menu, choose the Account Receivable Tab, and search for the Customer name that has the unpaid transactions

The debt from the customer is now recorded after we send the Products from the unpaid customer invoices.

Notes: This configuration also works the same way for the Account Payable in the Debt menu. If you set the AP Calculation as Before Received, your Debt from Suppliers will be recorded before you receive the products from the Unpaid Supplier Bill

To add a payment method that can be used when you create a Sales transaction or Purchase transaction, you can see this article: Add Payment Method
To set a surcharge at the payment, you can follow the steps in this article: Set Surcharge at Payment
To make payment from the Unpaid Sales or Purchase transactions, you can read this article: Add payment to Credit Sales / Purchase
To set a customer debt limit you can go to this article: Debt Limit for Customer