I have organized my chart of account and classified balance sheet. I arranged my Revenues accounts and accounts of Account Receivable based in its categories in my company.
When i issued credit sales invoice, i can choose the revenues account, but it directly goes to Account Raceivable (included in other assets in my classified balance sheet). How to make it directly goes to accounts of Account Receivable based in its categories in my company without making another journal entry.
Look more carefully at your Summary page when you create an invoice. (You might want to create a test invoice that you immediately delete, or even create a test company to see this.) In double entry accounting, you must balance debits with credits on each transaction.
Issuing a sales invoice creates an asset in the form of your customer’s obligation to pay you. That’s the debit, and it appears automatically in Accounts receivable. It simultaneously allocates revenue to an income account you should have designated for each line of the sales invoice. That is the credit.
If what I describe is not happening, you are entering sales invoices incorrectly.
Thank you for your response Tut.
Yup, I understood it must balance debits with credits. Nothing wrong about it, Accounts Receivable (debit) to Income Account (credit) when we approved/created journal. But what i meant is, can i arrange Account Receivable/AR account (such as to AR of A…,AR of B…, AR of C) and it is showing autmatically when i create sales invoice without making another adjusment journal to allocate it into appropriate AR account based on my classification on chart of account (like Income Account) ? Thank you.
If I understand what you are asking, you must first create the customer under the Customers tab. Then, when you create a new sales invoice, you designate the customer. You never allocate directly to Accounts receivable; Manager does that for you. Your main choices for account designation are the income and expense accounts, plus Billable expenses, Accounts payable, and other liability accounts.
You can’t have multiple “Accounts receivable” accounts. In future, I’m going to add ability to create custom control accounts. Then you can have multiple control accounts and specify which customer which belong to which control account.
Ok, I’ve got it. To Lubos, please make it soon for creating custom control accounts. Thanks for you both.
yes, I am in the same situation as Dafit123. I need to have different types of Accounts Receivables to match the different types of sources of Income.
ie Department A income on credit
Dr Acc Rec (Dept A) xxx
Cr Income (Dept A) xxx
Department B income
Dr Accounts Receivable (Dept B) xxx
Cr Income (Dept B) xxx
Now, all of the receivables are aggregated into Total Accounts Receivable without distinction.
So, when RECEIVE MONEY from the customer who has bought from Dept A and Dept B, I cannot allocate the receipts to the relevant dept.
Please bring in the Option to determine HOW we assign the Dr receivable Asset to each Revenue type.
Thank you.
If a customer doesn’t buy on credit, there is no need for an account receivable. That is the very definition of accounts receivable. And you can already assign individual line items to separate income accounts. Plus, you can use tracking codes to follow income and expenses for different departments.
Thanks, I understand what Accounts Receivables are for - credit sales.
Please explain Tracking Codes so I can allocate monies received to appropriate Department.
In the Chart oF Accounts I assigned codes 1, 2, 3, 4, to groups of accounts eg Current Assets = 1, NonCurrent = 2, Liabilities = 3 etc. Same for P&L Stmt so that certain expenses are grouped.
Is this correct?
See my other response on account codes.
Tracking codes are explained in the Guide at Manager Cloud.