Trade receivables

Trade receivables in the financial statements

Trade receivables is a balance-sheet line item: a balance at a date, with a debit balance in the ledger.

Trade receivables in Business Central

How the accounts are selected

• Category Accounts Receivable (4) and every category below it

5 posting accounts in total.

Posting accounts

• 10001 TOTAL ASSETS
  • 15000 Receivables
    • 15100 Account Receivables
      • 15110 Account Receivable, Domestic
      • 15120 Account Receivable, Foreign
      • 15130 Contractual Receivables
      • 15140 Consignment Receivables
      • 15150 Credit cards and Vouchers Receivables

Metrics using trade receivables

• Free Cash Flow to Equity (through another metric): Net profit − change in non-current assets − change in Trade Working Capital + change in financial debt
• Free Cash Flow to Firm (through another metric): EBIT − Income tax − change in non-current assets − change in Trade Working Capital
• Quick Ratio: (Cash and cash equivalents + Short-term investments + Trade receivables) ÷ Current liabilities
• Trade Working Capital: Trade receivables + Inventory − Trade payables