> ## Documentation Index
> Fetch the complete documentation index at: https://docs.vis42.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Accounts Receivable

> Invoicing, collections, and payment tracking — automated by Mercury, controlled by you.

## How Mercury Handles This

Mercury, VIS42's Secretary agent, manages the communication layer of your receivables automatically:

* Sends payment reminders to customers as due dates approach
* Escalates overdue invoices with progressively firmer tone (friendly → firm → urgent)
* Notifies you when invoices are viewed, partially paid, or overdue
* Drafts collection emails for your review before sending

<Card href="/agents/mercury" title="Mercury — The Secretary">
  Configure Mercury to handle your collections automatically
</Card>

## Key Concepts

| Term            | Meaning                                                  |
| --------------- | -------------------------------------------------------- |
| **Invoice**     | A formal payment request sent to a customer              |
| **Quote**       | A price proposal that can be converted to an invoice     |
| **Credit Note** | A document that reduces the amount a customer owes       |
| **Counterpart** | The customer or supplier record in VIS42                 |
| **DSO**         | Days Sales Outstanding — average days to collect payment |

## Invoice Status Lifecycle

Draft → Sent → Viewed → Partial → **Paid** (or Overdue → Cancelled)

* **Draft** — Being prepared, not yet sent
* **Sent** — Delivered to customer
* **Viewed** — Customer opened the invoice
* **Partial** — Payment received but not in full
* **Paid** — Fully settled
* **Overdue** — Past due date with no full payment
* **Cancelled** — Voided

<Warning>
  Once an invoice is marked **Sent**, editing is restricted. Cancel and re-issue if corrections are needed.
</Warning>

## Creating an Invoice

<Steps>
  <Step title="Go to Receivables → Invoices and click New Invoice">
    Select an existing counterpart from the dropdown, or create a new one inline.
  </Step>

  <Step title="Add line items">
    Select products from your catalog or enter custom line items. Each line includes description, quantity, unit price, and tax rate.
  </Step>

  <Step title="Set payment terms">
    Choose a due date or select a payment terms template (Net 15, Net 30, etc.). Add any notes visible to the customer.
  </Step>

  <Step title="Preview and send">
    Click Preview to see the customer-facing PDF. Click Send to deliver by email, or Download to send manually.
  </Step>
</Steps>

<Tip>
  Use **payment terms templates** (set in Configuration → Payment Terms) to pre-fill due dates consistently across all invoices.
</Tip>

## Creating a Quote

<Steps>
  <Step title="Go to Receivables → Quotes and click New Quote">
    Quotes follow the same line item structure as invoices.
  </Step>

  <Step title="Set a valid-until date">
    Quotes expire automatically after this date — the customer sees this on the document.
  </Step>

  <Step title="Send and track">
    Send to the customer. VIS42 tracks whether it has been viewed.
  </Step>

  <Step title="Convert to Invoice">
    When accepted, click **Convert to Invoice**. All line items carry over — no re-entry needed.
  </Step>
</Steps>

<Tip>
  Converting a Quote to an Invoice preserves all line items and pricing. The original quote is archived automatically.
</Tip>

## Issuing a Credit Note

<Steps>
  <Step title="Open the invoice and click Issue Credit Note">
    You can issue a partial or full credit note against any paid or sent invoice.
  </Step>

  <Step title="Enter the credit amount and reason">
    Common reasons: overcharge, return, discount, correction.
  </Step>

  <Step title="Apply or refund">
    Credit notes can be applied to a future invoice for the same counterpart, or flagged for direct refund.
  </Step>
</Steps>

## Recording a Payment

<Steps>
  <Step title="Open the invoice and click Record Payment">
    Use this when payment arrives outside of an automated channel (bank transfer, cash, cheque).
  </Step>

  <Step title="Enter amount, date, and payment method">
    For partial payments, the invoice moves to Partial status. Record additional payments until fully settled.
  </Step>
</Steps>

## Recurring Invoices

For subscription or retainer billing:

<Steps>
  <Step title="Create the invoice and click Set as Recurring">
    Choose the schedule: weekly, monthly, quarterly, or annually.
  </Step>

  <Step title="Configure auto-send">
    Enable Auto-Send to have invoices created and delivered automatically on schedule.
  </Step>

  <Step title="Set an end date (optional)">
    Leave blank for indefinite recurrence, or set a stop date.
  </Step>
</Steps>

<Warning>
  Recurring invoices use the line item prices set at creation time. Update the template if pricing changes.
</Warning>

## Best Practices

<AccordionGroup>
  <Accordion icon="bell" title="Let Mercury send reminders">
    Configure Mercury to send a friendly reminder 3 days before due date and an escalating follow-up 7 days after. This saves hours of manual follow-up each week.
  </Accordion>

  <Accordion icon="calendar" title="Set payment terms on every counterpart">
    Define default payment terms per counterpart in Counterparts → Payment Terms. These pre-fill on every new invoice.
  </Accordion>

  <Accordion icon="chart-line" title="Review DSO monthly">
    Themis can generate a Receivables Performance report showing your average collection time. Ask Themis for a receivables health KPI report.
  </Accordion>
</AccordionGroup>