Invoices sent to clients for work done are considered accounts receivable as it represents
the money you are to receive. Time entries, expenses and vendor bills contribute
toward the invoices sent. You can deposit payments in the relevant accounts after
receiving them using the Deposits screen. Core also enables you to transfer funds
between accounts. You can view all accounts receivable transactions and their details
in the A/R account registers.
Client investment is a good indicator of your accounts receivable. When the client
investment is too high, you need to remind the client for payments.
When you create invoices, Core debits the A/R account and credits the income or sales
tax account. When you record payments, Core debits the Undeposited Funds or bank
account and credits the A/R account.