Sent: Sunday, February 04, 2018 at 11:53 PM From: "Maf. King" <m...@chilwell.net> To: gnucash-user@gnucash.org Cc: "Cliff McDiarmid" <cliffhan...@gardener.com> Subject: Re: Creating and Posting an Invoice On Sunday, 4 February 2018 23:30:32 GMT Cliff McDiarmid wrote: > Hi > > I've nearly got gnucash running as i want it but i need some advice on > posting an invoice which is proving confusing. > > I create an invoice where one has to select an Income account; in my > case a current account. But when it gets to posting the invoice one > has to select a 'Post to Account' where one has to create a 'A/c > receivable'. I assume this because of the double accounting, but why > can't I just select an Income account such as 'Wages' at this stage? > >OK, so GC's invoice subsystem uses a concept called "accrual accounting". You >write the invoice and expect to be paid at some point in the future. (end of >month, 30 days, that sort of thing) >With that in mind, the income is generated when you create the invoice, even >though you don't physically have the cash yet. >As you write out the line items on the invoice in GC, you select the relevant >income account (eg Income:Sales or Income:consulting etc.) When the invoice >is "posted" into the GC books, this has the effect of increasing your income >totals. (your bank account isn't income, it is an asset account) >But where to post it to balance the double entry? As far as gnucash knows, >you probably don't have the money yet, (assuming you are running accruals >"properly"), so clearly the bank account is the wrong place. This is the >purpose of the special A/R account. It stores the "earned but not yet >received" money - and it is the other half of double-entry. >At some point in the future, when the money actually arrives (maybe in your >case that is 1 second later, not 1 month or so!) you "process payment", which >decreases the A/R and increases the bank account (income is untouched at this >stage. you already earned it!) One more thing on this subject. Why, when posting the invoice does it place the amount in the A/R account as you explained, BUT also in the receivable account(current)as a DEBIT!
thanks Cliff _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.