Accounts Receivable
Overview
Accounts Receivable represents the money owed to the ISP by resellers and customers for services already provided. In ISPBills, the Accounts Receivable page gives you a consolidated view of all outstanding balances across your reseller network, allowing you to track who owes you money and how much.
What Makes Up Accounts Receivable
Accounts Receivable in ISPBills has two components:
1. Postpaid Reseller Balances
When a postpaid reseller activates a customer or renews a service, the cost of that activation is charged to the reseller on credit. The reseller does not pay upfront — they owe the amount to the ISP until they settle their balance. This outstanding amount is recorded as Accounts Receivable.
Each time a postpaid reseller:
- Activates a new customer → their receivable balance increases.
- Renews a customer's package → their receivable balance increases.
- Makes a cash payment to you → their receivable balance decreases.
2. Customer Outstanding Balances
Customers with unpaid invoices (monthly billing) also contribute to Accounts Receivable. Until the customer pays their bill, the unpaid invoice amount is considered receivable.
The Accounts Receivable Page
The Accounts Receivable list shows all postpaid operators and their current outstanding balances:
| Column | Description |
|---|---|
| Operator / Reseller Name | Name of the reseller who owes the balance |
| Outstanding Balance | Total amount currently owed to you by this reseller |
| Actions | Entry Cash Received, Cash Out, View Statement |
Recording Cash Received from a Reseller
When a reseller pays their outstanding balance, record it immediately to keep accounts accurate:
- Navigate to Accounts > Accounts Receivable.
- Find the reseller in the list.
- Click "Entry for Cash Received" or Actions > Cash Out.
- Enter the amount received and the payment date.
- Click Save.
The reseller's outstanding balance is reduced by the recorded amount. The transaction is logged in the accounting ledger.
Alternative paths to record the same payment:
- Resellers & Managers > Resellers > Actions > Entry Cash Received
- Accounts > Accounts Receivable > Actions > Cash Out
All three methods produce identical results.
How to Reduce Accounts Receivable
| Action | Effect |
|---|---|
| Record a cash payment from a reseller | Decreases reseller's receivable balance |
| Customer pays their invoice | Decreases customer outstanding balance |
| Credit note or adjustment | Reduces the balance without a cash transaction |
Dashboard Summary
The total Accounts Receivable (sum of all outstanding reseller balances) is displayed prominently on the ISPBills Dashboard. Use this figure to monitor the overall credit exposure of your reseller network.
Monitoring Aging Balances
Review the Accounts Receivable list regularly to identify resellers who have not settled their balance for an extended period. Aging balances (amounts outstanding for many days or weeks) represent financial risk — the longer a balance remains unpaid, the harder it becomes to collect.
Best practices:
- Set a credit limit for postpaid resellers and enforce it.
- Review outstanding balances weekly or at the start of each billing cycle.
- Contact resellers with long-overdue balances promptly.
- Consider switching persistently late-paying resellers to a prepaid billing model.
Why Managing Receivables Matters
Untracked or unrecorded receivables mean your ISP is effectively providing services without compensation. Consistent use of the Accounts Receivable module ensures:
- You always know exactly how much each reseller owes.
- Cash flow is predictable and visible.
- Financial disputes are resolved quickly using the recorded transaction history.