Sent: Monday, February 05, 2018 at 11:55 PM From: "Adrien Monteleone" <adrien.montele...@gmail.com> To: "Gnucash Users" <gnucash-user@gnucash.org> Subject: Re: Creating and Posting an Invoice >That’s the same account. >Accounts Receivable is a Current Asset account. That is what the invoice posts to. (other than the chosen Income account) >In order to increase the balance, you post a debit to it. >If you want to increase an Asset or an Expense, you debit the account. >If you want to increase Income, Liabilities or Equity, you credit the respective account > On Feb 5, 2018, at 4:18 PM, Cliff McDiarmid <cliffhan...@gardener.com> wrote: > > > > 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 got it now. The mistake I was making was putting my current a/c as the income a/c. 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.