Statement of Account
Purpose: facilitate collection of accounts
receivable
File Name: STATMENT
Format: Single Page, 1 Part or multi-part
A statement is a form which can show both you and your
customer outstanding balances on the customers account. The statement accomplishes this by
acting as a running total of credits and debits to the customers account. When a customer
first places an order on credit, a statement is generated by the accounting department
with the customer's name and address, terms and salesperson's name. The credit invoice
becomes the first line of the statement, and the outstanding balance becomes the statement
balance.
As payments are made, or as additional credit sales occur,
these transactions are added to the statement, and the balance owing is updated as well.
Many companies will generate a new statement for each customer monthly or quarterly,
bringing forth the "Balance Forward" from the last statement as the first item
on the new statement.
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