customerbalance

Customer balance refers to the amount registered against a customer's account in a business system. It can denote either a liability for the seller when customers owe money, or a prepaid or stored-value balance for the customer. In most invoicing contexts, it represents the net amount of outstanding invoices minus payments and credits.

Calculation and states: The balance is typically calculated as total charges billed to the customer minus payments received, credit memos, refunds, and discounts. When the result is positive, the customer owes money; when zero or negative, the account is current or may contain store credit.

Management: Businesses use balances for cash flow planning, credit control, and collections. They monitor aging buckets such as current, 1-30 days overdue, 31-60 days, and 90+ days. High balances may trigger reminders, payment arrangements, or escalation.

Data and systems: In ERP and CRM platforms, the customer balance is stored on the customer record and linked to the accounts receivable sub-ledger. Balances update with invoices, payments, credits, and refunds, and require reconciliation with the general ledger and bank statements. Privacy and security considerations apply to handling financial data.

See also: accounts receivable, store credit, prepaid accounts.