Correct workflow for customer invoicing to payment

I am new to this and confused by Manager’s summary under assets which shows both Account’s receivable and Credit account amount’s. The credit account seems to accumulate all customer invoices and shows a negative amount, while the Account’s receivable shows a positive amount (which seems correct to me as that is an asset).

My Work flow is as follows:
Generate customer invoice -> Allocate payment (From Bank Import) to Account’s receivable.

Is this correct? It appears it is as the customer invoice shows as paid but why is the same amount being listed (accumulated) under the credit account?

What account are you referring to as the “credit account?” There is no account with that name in Manager, nor has there ever been.

If, by chance, you are referring to an account named Customer credits, your version of Manager is years out of date and thousands of updates behind. I don’t know where you got it, but you should only download the program from, never from third-party distribution sites.

Perhaps I created it one, I can’t remember. I think I was using a one year old version of Manager (Desktop) so I think not that old, but have now updated it anyway.

A screen shot of my summary page (Assets) is below. I will look into the chart of accounts and see if I can spot anything that I may have inadvertently created.


read the below guides.

If your version is anywhere close to current, the version number is at the bottom of any screen. Read the Guide: As I write this, the version number is 19.10.3.

Yes, you created the account named Credit accounts. It may or may not be a custom control account. Look at the Edit screen for that account under Chart of Accounts in Settings to determine that. If so, you may have assigned customers to that control account. If you want them to appear under Accounts receivable, edit them in the Customers tab.

Ahhh, ok. Now I see why I created that account.
When I generate sales invoices I am unable to add them to “Accounts receivable” because that never shows up in the pull down menu for “Account”.

I have customer accounts that I generate invoices for once /Mth. They pay the invoices via a variety of methods. I seem to have no trouble with payment of the invoices as I can allocate payments to accounts receivable and the invoice number. It is the invoice itself which I cannot allocate to accounts receivable.

You are probably going to tell me that it is because it is an invoice not a receipt but if so what account should the invoice be put under?

As I understand it the invoice is an asset until paid, when it then becomes income, but there was only special accounts listed under the sales invoice “Account -> Asset” drop down before I created the “credit accounts” as an asset.

I cannot do inventory items because the invoices are for general sales (too hard to track individual stock sold).

Manager does this automatically. By default, every customer is a subsidiary ledger under the Accounts receivable control account. So, unless you assign a customer to a custom control account, when you select a customer on a sales invoice, the total is automatically debited to Accounts receivable. The corresponding credit is posted to the income account you select for individual line items.

Ahh ok, I appreciate the help on this. So when creating a customer invoice, unless I select an inventory item, the item line has a drop down labelled “Account”, should I just leave this blank then?

I should explain that I create the customer invoice based on a total amount from a hand written ledger. It is far too time consuming to re-create the ledger line by line on the invoice so I have avoided doing that. I realise I might be using this differently from the way manager is intended to work but is there a work around for this?

All I want to be able to do is create a customer invoice for an amount of money, not based on inventory, and have this amount show as an asset to the business until it is paid and then it should become income.

Definitely not, because the transaction will end up in Suspense awaiting completion. As I wrote above, “The corresponding credit is posted to the income account you select for individual line items.”

Suppose you sell services and have created an income account named Service sales. You would choose that account when invoicing a customer for a service you provided.

That is fine, unless you are selling inventory, in which case Manager will not track its movement, cost of sales, or anything else related to inventory.

When you create the sales invoice, the total amount is posted to the asset account, Accounts receivable and the customer’s subaccount. But it is also posted to the income account because of double-entry accounting. When it is reported depends on whether you choose accrual or cash basis accounting. See

Sorry for the delay in reply.
Thanks, that is clear to me now.