Sequential Liability Terms and Definitions

Term	Definition
A/P	Accounts payable. These are accounts that are payable to your vendors. Accounts payable can be entered and tracked in vendor bills and vendor credits.
A/R	Accounts receivable. These are accounts that are receivable from your customers. Accounts receivable can be entered and tracked in customer invoices and credit memos.
A/P balance	This is also known as payable balance. It is the total amount payable to your vendors for a project. The A/P balance is computed as the total of all vendor bills entered for a project minus bill payments and vendor credits.
A/R balance	This is also known as receivable balance. It is the total amount receivable from your customers for a project. The A/R balance is computed as the total invoice amount minus customer payments and credit memos.
Vendor bill	A vendor bill is a transaction that records payables as they arrive from vendors.
Vendor credit	A vendor credit is a transaction that creates credit from a vendor that can be applied to a payables account. This is also known as bill credit.
Customer invoice	A customer invoice is a transaction that creates a bill for goods and/or services sold to a customer for which payment is not received at the time of delivery.
Credit memo	A credit memo is a transaction that can be used to reverse a charge billed to a customer.
Bill payment	A bill payment is a transaction that records payment to a vendor. Bill payments are applied to vendor bills.
Customer payment	A customer payment is a transaction that records payment from a customer. Customer payments are applied to customer invoices or cash sales.

Term

Definition

A/P

Accounts payable.

These are accounts that are payable to your vendors. Accounts payable can be entered and tracked in vendor bills and vendor credits.

A/R

Accounts receivable.

These are accounts that are receivable from your customers. Accounts receivable can be entered and tracked in customer invoices and credit memos.

A/P balance

This is also known as payable balance. It is the total amount payable to your vendors for a project.

The A/P balance is computed as the total of all vendor bills entered for a project minus bill payments and vendor credits.

A/R balance

This is also known as receivable balance. It is the total amount receivable from your customers for a project.

The A/R balance is computed as the total invoice amount minus customer payments and credit memos.

Vendor bill

A vendor bill is a transaction that records payables as they arrive from vendors.

Vendor credit

A vendor credit is a transaction that creates credit from a vendor that can be applied to a payables account.

This is also known as bill credit.

Customer invoice

A customer invoice is a transaction that creates a bill for goods and/or services sold to a customer for which payment is not received at the time of delivery.

Credit memo

A credit memo is a transaction that can be used to reverse a charge billed to a customer.

Bill payment

A bill payment is a transaction that records payment to a vendor. Bill payments are applied to vendor bills.

Customer payment

A customer payment is a transaction that records payment from a customer. Customer payments are applied to customer invoices or cash sales.

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