Trade Debtors (definition)
Trade debtors are invoices owed to you by customers. They’re also sometimes called debtors or accounts receivable. Trade debtors may additionally refer to those customers who owe you money.
Let’s say you sell your product to a customer on credit and send them an invoice for the sale. The amount your customer owes you from that invoice is part of your trade debtors. In your customer's records, that invoice will be part of their trade creditors. In this way, trade debtors and trade creditors are two sides of the same transaction.
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Disclaimer: This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.