AR Balances

The purpose of Accounts Receivable (AR) Balances model is to analyze the company's accounts receivable from its customers and payers. Understanding your company's credit management performance can improve revenue and profit by facilitating sales and reducing financial risks. This model shows the summarized invoice, sales, and payment amounts on a monthly basis for each customer or payer, including the variances between the expected payment and the received payment amounts.

The model provides insights into these topics:
  • Trends in day sales outstanding
  • Payment history of customers and payers
  • Payment leakages

Accounting Period Date is used to analyze the facts in this model.

Source information

AR Balances model is based on the accounts receivable balance file in M3 BE. The accounts receivable balance file (FSLBAL) is automatically updated when transactions are created in M3. You can update or recreate the balance file manually by running the program AR Balance File. Create/Delete (ARS915).
Note: This model does not investigate the invoicing process (Invoice Accuracy) because it does not include the invoice level. The main purpose of this model is to give an overview of the payment history and performance of customers.