Accounts Receivable & Sales

1

Hi sorry I’m very fresh to accounting and this is my second attempt at building my accounts despite running my business for a couple years now. So help me if there’s any mistake. My current understanding is, Accounts Receivable is considered a Current Asset on the Balance Sheet, assuming I will get paid in 12 months. But in my business, I sometimes sell on Credit, and get paid later. I understand that I can create a Sales Invoice in Manager, and once I received payment I can just do a normal Bank Transaction>Receive Money> point it to Accounts Receivable > Invoice number…and that clears out the related balance in AR am I right so far?

So my real question is, I would still like to see the Credit Sales in my Profit & Loss column, specifically in my Sales figure.

  1. How can I get my Sales Invoice to also appear as a Sales? Is it possible?
  2. Or generally, it doesn’t count as a Sale until I get paid? If so, then do I have to manually enter another Bank Transaction with the same amount but this time point it to Sales? But that will double up wouldn’t it?

Or am I getting things all wrong and not following the right procedure? Hope someone can help me out. My business is literally as basic as it goes so I wish to keep my accounts as simple as possible as well. If you have any tips please do share!

2

Under the Summary tab > Set Period > Accounting method make sure it is set to Accrual Basis

3

Hi thanks for your attempt to help despite my newbie mistake! Yes I’ve finally solved it and it’s basically due to my own silly mistake. I was simply pointing to the wrong accounts and I did not find out why but I basically deleted everything, the invoice and bank transaction, and redo the whole thing and it finally worked! But anyway thank you very much for your tip!