Statement

Basics

A summary document showing all transactions between a business and customer over a period.

Detailed Explanation

An account statement lists all invoices, payments, credits, and outstanding balances for a specific customer over a time period (usually monthly). Unlike individual invoices, statements provide a comprehensive view of the business relationship, showing opening balance, new charges, payments received, and current balance owed. Statements are useful for reconciliation, identifying discrepancies, and understanding overall account status, especially for customers with multiple ongoing transactions.

Examples

  • A monthly statement showing 5 invoices and 3 payments received
  • A statement revealing an outstanding balance of $2,500 from previous months

Related Terms

Invoice Accounts Receivable (AR) Payment

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