Glossary
What is a statement of account?
What a statement of account is, how to read its running balance, and why sending one each month gets invoices paid.
Updated
In short
A statement of account lists every invoice, payment and note with one customer or supplier for a period, with a running balance. SimpleERP builds one for any date range, with ageing, ready to print.
A statement of account is a dated list of every transaction with one customer or supplier over a period: opening balance, invoices, payments, credit and debit notes, and the running and closing balance. Sellers send it to show what is owed and to agree balances with the other side. It summarises documents already issued; it is not a new bill.
Statement of account: a worked example
Harbour Steel Furniture's statement for Riverside Stores, 1 to 30 September 2026, in US dollars:
| Date | Document | Debit | Credit | Balance |
|---|---|---|---|---|
| 1 Sep | Opening balance | $2,500 | ||
| 3 Sep | Invoice INV-2026-0012 | $5,988 | $8,488 | |
| 10 Sep | Receipt RCPT-2026-0038 | $2,500 | $5,988 | |
| 18 Sep | Invoice INV-2026-0015 | $7,740 | $13,728 | |
| 22 Sep | Credit note CN-2026-0003 | $774 | $12,954 | |
| 28 Sep | Receipt RCPT-2026-0041 | $10,000 | $2,954 |
FAQ
Questions, answered
What is the difference between a statement and an invoice?
An invoice bills one sale. A statement lists every invoice, payment and adjustment over a period and shows the balance after each. The customer pays invoices; the statement shows them which ones are still open.
How often should I send customers a statement?
Monthly works for most businesses that sell on credit, early in the month for the month just ended. Customers with many invoices find it easier to pay from a statement, and any disagreement shows up while it is still easy to trace.
Why does my customer's balance not match mine?
Usually a payment one side has not recorded yet, a credit note the customer has not booked, or a deduction such as withholding tax. Compare the two statements line by line from the last date the balances agreed; the first line that differs is the cause.
Can I get a statement for a supplier too?
Yes. A supplier statement lists their bills, your payments and debit notes with a running balance, so you can match it line by line against the statement they send you before you pay them.
Related
Keep reading
Statement of account format
A free customer statement of account format with opening balance, invoices, receipts, credit notes, running balance and closing balance.
Read moreAgeing report
Unpaid invoices or bills grouped by how long they are past due.
Read morePayments & receivables
Receipts and payments allocated oldest first, receivables and payables ageing, and statements.
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