I am working on accounting application and have one dilemma on how to treat Account Payable & Receivable with respect to them actualy been or not payed.
For example, Company A sells Product B to Customer X. They issue an invoice, send to Customer X and at that point of time, the transaction is shown on Account Receivable with notion its for Customer X and other info (date, etc...).
The question is, what happens when Customer X actually pays for it? Should that transaction still be visible in Account Receivable or removed from it?
I am interested in it from accounting point of view.
Once a payment is applied on this invoice, Accounts Receivable should be credited and its balance for this customer should be 0