According to the party model, a shared receivable account named “Debtor” is automatically generated. This serves as the default receivable account for all customers. If necessary, you have the option to create a new receivable account and update it in the Customer master record.

Question: Should I establish a distinct receivable account for each customer?

Answer: While it is possible, it is not the recommended approach. If your objective is to monitor receivables separately for each customer, it is unnecessary. You can still access Account Receivable and General Ledger reports for each customer.

Similar to the creation of the “Debtor” account for receivables, a default account named “Creditors” is generated for tracking payables under Account Payables.