What are trade debtors?

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.

 

Related terms:
What are trade creditors?
What is an invoice?
How do I make an invoice?
How do I send an invoice?

Related Xero feature: 
Get paid faster with online invoicing software

Related Small Business Guide: 
Get prompt payment on the invoices you send

Accounting Terms

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What are trade debtors?

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.

 

Related terms:
What are trade creditors?
What is an invoice?
How do I make an invoice?
How do I send an invoice?

Related Xero feature: 
Get paid faster with online invoicing software

Related Small Business Guide: 
Get prompt payment on the invoices you send

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