Which statement about batch posting versus real-time posting is true?

• A. Real-time posting updates AR immediately; batch posting processes payments at intervals; real-time improves accuracy and reduces AR days
• B. Batch posting updates AR immediately; real-time posting processes payments at intervals
• C. Real-time posting has no impact on AR
• D. Batch posting is obsolete in all systems

Answer: (A)

Posting mode is about when payments affect a customer’s AR balance. Real-time posting updates accounts receivable as soon as a payment is captured, so the customer’s balance and aging reflect the payment immediately. Batch posting, on the other hand, collects payments and applies them only when a scheduled batch runs, so AR and aging can stay higher for longer until that batch processes.

Because payments are applied instantly in real time, cash flow timing improves and AR days decrease, and the ledger stays more accurate with fewer timing gaps. Batch processing can be efficient, but it delays updates and can complicate reconciliation.

The other statements misstate how posting works: real-time posting does impact AR, and batch posting is not obsolete in all systems.