I think many people have heard such phrases: "debtors are hanging," "accounts receivable have been closed," "accounts receivable has not been repaid." Someone understands roughly what this is about, and someone wonders: and what does it mean in general?
Moreover, next to the accounts receivable, another creditor constantly appears.
So, to really understand what all this means, you need to at least understand the essence and meaning balance sheet.
And then, if it's completely on your fingers, everything is quite logical.
There are two sides to the balance sheet: assets and liabilities.
To simplify it a lot:
- Assets - what the organization has, where its funds are directed.
- Liabilities - at the expense of which sources all this was formed, where did the funds come from?
And among assets there is such a direction as accounts receivable, and among liabilities accounts payable.
Now imagine the situation.
You have your own organization, business.
You bought an item from a supplier for 100 rubles, but you have not yet paid the supplier for this item. We have already received the goods and put them in our warehouse.
What happened at that moment?
You have an asset - 100 rubles worth of goods in stock.
In accounting, this is the account 41 "Goods".
But at the same time, there was a debt to the supplier - after all, you received the goods, but you haven't paid the money yet.
This is already a accounts payable of 100 rubles.
In accounting, the 60 account is used to settle accounts with suppliers and contractors.
In other words, it turns out a very simple picture:
- We have a product worth 100 rubles.
- And at the same time, someone appeared to whom we owe 100 rubles.
That is why, in this case, the source of our asset's appearance is related to accounts payable.
- The asset is 100 rubles.
- The liability is 100 rubles.
- The balance is converging.
Now let's move on.
Let's say we sold this product from a warehouse to a customer.
But the buyer didn't pay us right away either.
In other words, we sold him the goods on loan, with deferred payment.
Let's say, again for 100 rubles.
And that's where the most interesting thing happens.
We no longer have the product in stock.
But instead of the product, we have the right to receive 100 rubles from the buyer.
In other words, instead of goods, the asset now has accounts receivable of 100 rubles.
We have a debtor who already owes us money.
And our accounts payable to the supplier have not disappeared by themselves.
We still owe the supplier 100 rubles.
And it turns out:
- Asset - accounts receivable of 100 rubles.
- Liability - accounts payable of 100 rubles.
The balance is still converging.
Only now we don't have the product anymore.
There is a person or organization that owes us 100 rubles.
And there is a person or organization to whom we owe 100 rubles.
That's where the whole point comes in.
- Accounts receivable are those who owe our business.
- Accounts payable are those to whom our business owes.
You can even remember it with one phrase.:
- The debtor owes us.
- We owe the lender.
And do not confuse accounts payable with credit debt.
Accounts payable are not necessarily a bank loan.
For example, a supplier has shipped goods to us, and we have not yet paid - this is already a debt payable to the supplier.
Now let's look at our whole simple chain.
- At first, the supplier gave us the goods, but he has not received the money yet. We owe the supplier.
- Then we sold this product to a customer, but we haven't received the money yet. The buyer owes us.
That is, it turns out:
- The supplier → gave us the goods → we owe the supplier.
- We → gave the buyer the goods → the buyer owes us.
That's the whole point of debtors and creditors.
- The creditors are the ones we owe.
- Debtors are those who owe us.
And if you put it quite simply, then you can imagine an ordinary everyday situation.
You borrowed 100 rubles from Petya.
For you, Petya is a creditor, because you owe him 100 rubles.
And then you lent that 100 rubles to Vasya.
Now Vasya is your debtor, because he owes you 100 rubles.
That's the whole accounting "horror story" about the debtor and the creditor.
In fact, the meaning is very simple:
- accounts receivable - we are owed;
- we owe the accounts payable.
And then the accounting department starts counting deadlines, amounts, repayment, delays and everything else.
But the very basis is exactly that.
