AR Image Simulator

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This is an Accounts Receivable (AR) simulator,  you can use these scenarios to test financial logic, cash flow forecasting, and edge-case handling.

Category 1: Standard Payment Cycles

1. Punctual Full Payment: A customer pays the total invoice amount exactly on the due date.
2. Early Payment Discount: A customer pays within 10 days to trigger a "2/10 Net 30" discount.
3. Net-30 Standard: A customer pays on day 30 with no adjustments.
4. Net-60 Extended: A high-volume client uses longer negotiated terms.
5. Partial Payment (Installment): A customer pays 50% now and schedules the rest for next month.
6. Advance Payment: A customer pays for services before the invoice is generated, creating a credit balance.
7. Grace Period Payment: Payment arrives 3 days after the due date but within the "no-penalty" grace window.

Category 2: Delinquency & Collections

1. Mildly Overdue (31-60 Days): An invoice enters the first stage of the aging bucket.
2. Severely Overdue (91+ Days): An invoice moves to the "at-risk" collection category.
3. Partial Payment on Delinquent Account: A late customer pays only the principal, ignoring interest.
4. Disputed Invoice: A customer refuses to pay, claiming the goods were damaged, triggering a "dispute" state.
5. Promised Payment: A customer's "Promise to Pay" date is recorded but not yet reached.
6. Broken Promise: A customer misses the manually set "Promise to Pay" date.
7. Third-Party Collection: An account is sold to a collection agency for 40 cents on the dollar.

Category 3: Errors & Adjustments

1. Overpayment: A customer pays $1,500 on a $1,050 invoice; the system must track the $450 credit.
2. Underpayment (Small Variance): A customer pays $99.90 on a $100 invoice; the system auto-writes off the $0.10.
3. Duplicate Payment: The same check/ACH is processed twice by mistake.
4. Wrong Account Allocation: Payment is received from "Client A" but mistakenly applied to "Client B."
5. Refund Request: A customer with a credit balance requests a cash refund.
6. Bank Rejection (NSF): A check bounces, requiring the AR balance to be reinstated plus a fee.

Category 4: Bad Debt & Credit Risk

1. Bankruptcy Filing: A customer enters Chapter 11; the balance must be frozen or written off.
2. Specific Write-Off: A specific invoice is deemed uncollectible and moved to Bad Debt Expense.
3. Allowance for Doubtful Accounts (ECL): Monthly adjustment of the "Expected Credit Loss" based on aging percentages.
4. Recovery of Bad Debt: A customer pays an invoice that was written off in a previous year.
5. Credit Limit Reach: A customer attempts to buy more, but their AR balance exceeds their $50k limit.

Category 5: Complex Billing & Fees

1. Late Fee Compounding: Monthly interest (e.g., 1.5%) is automatically added to an overdue balance.
2. Tax Adjustment: A customer provides a tax-exempt certificate after the invoice was issued.
3. Credit Memo Application: A customer uses a credit from a previous return to pay a new invoice.
4. Rebate Application: A year-end volume rebate is applied as a credit to the AR balance.
5. Currency Exchange Fluctuation: An invoice in EUR is paid in USD at a different rate than when it was billed.

Category 6: Advanced & Simulation Edge Cases

1. Factoring: The business sells its AR to a bank at a discount to get immediate cash.
2. Short-Pay (Unearned Discount): A customer takes the 2% discount even though they paid on day 20.
3. Consolidated Billing: Multiple invoices for one parent company are paid with a single lump sum.
4. Retroactive Price Change: A contract change requires updating 10 "open" invoices.
5. Clawback: A previously paid commission is revoked, adding a "debit memo" to the customer's AR.
6. Write-Down (Impairment): The value of the entire AR portfolio is reduced due to a market crash.
7. Fiscal Year-End Cutoff: A payment is received on Jan 1st but must be recorded as Dec 31st for tax purposes.