Net Receivables Formula is a business formula that calculates the net amount of money owed to an organization by its customers. It takes into account the total amount of receivables, less any bad debts or write-offs for uncollectable payments. This number gives businesses and organizations a better idea of their financial standing and helps guide decision making when it comes to budgeting and forecasting. In short, the Net Receivables Formula is an essential tool for assessing your organization’s cash flow and debt management.