# About company and person AR account types

There are two different types of AR accounts: **company accounts** and **person accounts**.

Set up **company AR accounts** for businesses or organizations. For example, if your store sells plumbing supplies, you might set up a company account for UltraPlumbr, a large plumbing repair company with multiple locations and 10 trucks. You might also set up a company account for Dan's Drains, a local plumber who runs his plumbing repair company by himself.

Set up **person AR accounts** for individuals. For example, if your store sells general goods, you might set up a person account for good customers like Jane DuGood, a local woman who runs an informal grassroots after-school program for local kids, because she buys a lot of food and supplies for the program. You might also set up person accounts for employees who need to make purchases on a company account. This allows you to set credit limits for individual employees that are different from the credit limit for the company. For example, you might set up person accounts with credit limits of $10,000 for each individual plumber who works for UltraPlumbr and set the company's credit limit at $50,000.

An AR account (company or person) must be linked to at least one customer record to enable purchases on the account in POS. In POS, the cashier looks up the customer record, enters all of the items for the transaction, and selects the AR tender type. This triggers POS and Store Manager to add the customer's purchase amount to the balance of the connected AR account.

**Example: Company AR account linked to one or more customer records**

You can create a company AR account and link it to one or more customer records to enable authorized employees to charge company purchases to the company's AR account. You cannot set credit limits on the customer records; you can only set a credit limit on the company AR account. This means that any of the employees who have a customer record linked to the company AR account can make purchases up to the company AR limit.

<div align="left"><figure><img src="/files/PKgdobsIVBbcY1XNxrzN" alt=""><figcaption></figcaption></figure></div>

**Example: Person AR account linked to one or more customer records**

You can create a person AR account and link it to one or more customer records to enable authorized people to charge purchases to the person AR account. You cannot set credit limits on customer records; you can only set a credit limit on the person AR account. This means that any of the people who have a customer record liked to the person AR account can make purchases up to the person AR account limit.

<div align="left"><figure><img src="/files/WfJXtJ5svz17sUeqsF6I" alt=""><figcaption></figcaption></figure></div>

**Example: Company AR account linked to person AR accounts (and customer records)**

You can create a company AR account and link it to one or more person AR accounts. In this scenario, a person AR account is usually linked to a single customer record (i.e., each authorized employee has their own person AR account). This allows the company to set credit limits for individual employees. The credit limits for person AR accounts (employee accounts) are typically lower than the credit limit for the company AR account.

<div align="left"><figure><img src="/files/3lNZwlwx1bTU59OfkQ4A" alt=""><figcaption></figcaption></figure></div>


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