Accounts receivable shown as asset instead of income

I’m having trouble with manager since I updated it a couple of months ago.

My ‘Accounts Receivable’ is located under the assets lists of accounts instead of the income. So when it comes time to view my profit and loss it shows a rather large loss. Is there any way I can change ‘accounts receivable’ so that it comes under the heading ‘Income’.

The Accounts receivable is linked so that when I input a bank statement I can select an invoice which has been paid, it is then shown as being made in the invoice section of manager. So I can’t create another account under income called accounts receivable as I have already tried this.



Accounts receivable is a control account that is intricately related to many functions of Manager, especially the subaccounts of customers. That is why you can’t just create another account with that name and have things work.

However, you may be misunderstanding account categorization. Accounts receivable are assets. Customers owe you money. In effect, you have loaned them money until they pay their invoices. But they are not income.

The income is recognized (in accrual accounting) when a sales invoice is issued. In Manager, income is also temporarily recognized in Billable time - movement when you have recorded time that will be invoiced later. That particular income will transfer to a normal income account, such as Sales, when you create the sales invoice with the billable time. Prior to that, Billable time will be shown as an asset, because you are going to be owed money as soon as you create the sales invoice.

Click on the blue numbers on your Summary page for your Sales accounts. You should see the transactions listed that balance the Accounts receivable, along with others that have already been paid.

I’ve been having the same confusion, but I think I might have figured out an answer to have it show where you want but have it still work properly (show your invoices as paid with the income going into Accounts Receivable, yet have it showing under “Income” on a profit and loss statement).

Using the Reports set to cash basis shows income under income. The Summary page does not.

Go to Reports, click Profit and Loss Statement and create a report for the time period you wish. On the “Accounting Method” drop-down selection, choose “Cash basis” instead of “Accrual basis” which is selected by default. When you view your report, all the amounts in Accounts Receivable that belong to income accounts will be shown in their respective totals.

It would be great to have the ability to show the totals this way on the Summary page. It doesn’t seem like something users are able to change with the current version of the software, but it would be awesome to have it implemented in an update!

I hope this helped. I totally stumbled upon it by accident, even after tedious searching for any answers. Good luck.

As Tut stated - Accounts Receivable is an ASSET not income.

However, when you create an invoice the double entry accounting should be to
Debit Accounts Receivable (Balance Sheet asset) and Credit Income on the P&L for the line items on the invoice.

If you have have created a receivable and have no income, most likely either (i) you have not pointed the line items you billed on those invoices to the correct revenue account. Do you have a large credit balance in Suspense by any chance? or (ii) you are actually set up on a cash basis but have not yet ‘received money’ from your customers to pay those open invoices in receivables).

There seems to be a lot of basic accounting questions recently.

You misunderstand accounts receivable. I recommend learning basic accounting principles before trying to use a double-entry accounting program. If you don’t, you’ll end up with so many mistakes you’ll never dig yourself out. Try Free, and covers everything you could want to know with simple examples.

Having issues as above. I know i can receive money by using the income tab but when i do it doesnt show in the invoice tab that it has been paid. What am i missing?

Can you show screenshot of transaction how did you record received money for sales invoice?

not sure how to screen shot

i recorded it under the accounts receivable for now so i could show that the account was paid until further instructed. I first tried receiving the money by using the income tab but it doesnt show paid

You can create sales invoice instead of recording them under receivables

correct i have done that but when i go to receive money from the invoice, the only way to show that it has been paid is put it under the account receivable. I am new at this so im sure im still missing a step somewhere

One option is download a programme called “MWSnap -3” and then you can take screen shots.
Another option is use your “prt scr” button on the key board - but I have never used that way

@hppoa2016, you can only receive money within the Bank Accounts or Cash Accounts tabs after clicking on one of the balances (or dashes) shown for the accounts. When recording receipt of money against a sales invoice, allocate the transaction to Accounts receivable and the appropriate invoice. But note that there will only be an invoice to record it against if the sales invoice was created first.

Your problem doesn’t sound so complex you necessarily need screen shots to get help. Describe step by step what you did and what happened as a result. As you do this, please be as precise as you can about the terminology you use. I think some on the forum are confused by your use of “income tab,” because there isn’t one. Tabs are the major modules showing in blue in the left navigation pane. You may be referring to an income account showing in the Summary. Receipts are not entered there. That is only a display that can lead to transactions that can be edited.