Outstandings: By Bill or On Account
Every credit sale leaves an amount receivable; every credit purchase leaves an amount payable. dsGST can track these in two ways, and you can use both in the same firm.
By bill
Each receipt or payment is matched to specific bills. At any moment you can see exactly which bills of a party are open, how old each is, and how much is left on it.
- Receivables: Receipt by Bill, Multi-Receipt by Bill, and the Outstanding by Bill statement.
- Payables: Payment by Bill and Outstanding by Bill (Payables).
This is the method to use when you chase parties bill by bill or give credit periods.
dsGST maintains bill-wise outstanding for the current financial year plus two previous ones. Older balances must be carried through the opening balances in the accounts.
On account (first-in, first-out)
Money received or paid is posted against the party's account without naming bills; older entries are treated as settled first. Receipts and payments on account can be matched against ledger entries or against sale / purchase entries.
Use this when parties pay a lump sum and you do not want to allocate it to bills.
Which should I use?
| If you… | Use |
|---|---|
| Follow up party by party on specific unpaid bills | By bill |
| Receive round-sum payments and only care about the party's total | On account |
| Need both | Both — they feed the same party account |
Video
See Video - Bill Wise Outstanding Statement