A business example
A design studio delivers a project and invoices ₹50,000. The customer pays ₹20,000 and agrees to settle the balance later.
Invoice
₹50,000 becomes due from the customer.
Collection
₹20,000 is received and matched to that invoice.
Outstanding
₹30,000 remains in accounts receivable.
What this shows
The studio should follow up on the unpaid ₹30,000, not the original invoice total. This simplified example leaves tax and other adjustments aside.
What it is often confused with
Sales recorded as revenue may remain unpaid; revenue is not necessarily cash collected.
What to look at in your business
Review customer balances by invoice, due date, dispute and subsequent collection.
Context and further reading
This entry explains the business term. The related guide below provides the next layer of context; any applicable legal test depends on the transaction and relevant period.
Kosha.Services · Updated 2 October 2026