Understand the accounts receivable account

Accounts Receivable is an asset account representing the money your business is owed.

When you create an invoice and approve the draft, the balance of the invoice is added to your accounts receivable. When you record a payment for an invoice, the payment is subtracted from the accounts receivable total.

You can manually categorize transactions to the accounts receivable account and use this account when creating journal transactions.

To review the transactions in the accounts receivable account:

1. Log in at waveapps.com.
2. On the left-side menu, click Reports > Account Transactions (General Ledger).
3. In the Account dropdown, select Accounts Receivables.
4. Select a date range and report type.
5. Click Update Report.

The account transactions report will show the exact payment made, even if the invoice is overpaid, in the accounts receivable account. This may result in different balances when comparing this report with your aged receivables report.