Yes, service revenue typically goes into accounts receivable when services are provided on credit. When a company delivers services to a customer but does not receive immediate payment, it records the revenue generated from those services as accounts receivable. This represents the amount owed by the customer to the company for the services rendered. Accounts receivable is an asset on the balance sheet, reflecting the company’s expectation of receiving payment in the future. As the customer pays off the balance, the amount is then moved from accounts receivable to cash or another appropriate account.
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
