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· TexaCore
The short answer
A customer statement of account lists the invoices issued to one customer, the payments and credits received from them, and the running balance, for a stated period. It answers one question: what does this customer owe us on this date? An invoice bills one sale; a statement shows the whole picture, so both sides can see what is still open.
A worked example
This is the statement of the customer in our invented company. The invoice is the credit sale and the receipt is the partial payment from the double-entry article. Document numbers are invented. Read the double-entry article for the entries behind them.
| Date | Document | Debit | Credit | Balance |
|---|---|---|---|---|
| Opening balance | 0 | |||
| 3 March | INV-001 | 2,400 | 2,400 | |
| 5 March | REC-001 | 1,000 | 1,400 | |
| Closing balance | 1,400 |
An invoice is a debit to the customer’s account because it increases what the customer owes; a payment is a credit because it reduces it. The closing balance of 1,400 is the same figure as accounts receivable in the trial balance. When a company has many customers, the receivable account is the total of all customer balances, and each statement is one part of that total.
How to use statements
- Send statements on a regular schedule, for example at month end, and more often for large or overdue balances.
- Ask the customer to confirm the balance or report differences by a stated date.
- Match differences line by line. Common causes are a payment still in transit, an invoice the customer did not receive, a credit note not yet recorded, or a disputed quantity or price.
- Correct a mistake with a proper document, such as a credit note or a reversal, instead of overwriting history.
- Keep the invoice reference on each payment so it can be matched to the right invoice.
In TexaCore
This section describes the product. You can open the statement of an account, customer, supplier or fund from its card. The statement can be printed or exported to PDF, Excel or Google Sheets from the share centre. It can also be shared as a frozen public link with an expiry date that you can revoke; the person who receives it can confirm the balance or dispute it.
Customer records and follow-up work live in the customer relationship module. See accounting, customer relationship management and sales and purchases. Next: stock and cost of goods sold.
Scope of this article
This article explains general accounting principles using IFRS terms and an invented company. Tax and statutory rules differ by country and are not covered; check them with a qualified accountant.
FAQ
- What is the difference between an invoice and a statement of account?
- An invoice bills one sale. A statement lists many invoices and payments over a period with the running balance, so the customer can see what is still open.
- How often should I send customer statements?
- Monthly is common, and more often for customers with large or overdue balances. The right interval depends on your payment terms.
- What should I do if a customer disputes the balance?
- Compare the statement with the customer’s records line by line, look for payments or credit notes that are not yet matched, and correct any error with a proper document instead of overwriting history.
Sources
- Financial Accounting (J. J. Weygandt, P. D. Kimmel, D. E. Kieso) — WileyAccounts receivable, subsidiary ledgers and the control account.
- Intermediate Accounting (D. E. Kieso, J. J. Weygandt, T. D. Warfield) — WileyReceivables and the reconciliation of customer accounts.
- Conceptual Framework for Financial Reporting — IFRS Foundation / IASBA receivable is an asset: a right to an economic benefit from a past event.