Hi there, I’m new to this so any help would be appreciated.
Here’s the scenario. I have a crèche, now I have parents who pay school fees (the Customer). That I have added. I want to invoice them for their next school fees due. And when paid I can enter payment into Journal. How is this done? The way I see it I have to enter it as an expense and then as income? How do I enter this into Journal and what do I use as account (School fees) as both expense and income. TY
Welcome to Manager.
Create the customers first. It sounds like you’ve already done that.
Issue the sales invoice to the customer. This creates an account receivable, which will be automatically allocated to the subaccount of the individual customer. Since the school fees are probably standard, I recommend creating sales invoice items under Settings to speed up invoice creation. Sales invoice items are simply shortcuts. However you generate the invoice line items, allocate to an income account. Create or modify these in Chart of Accounts under Settings.
When the parents pay, Receive Money either directly from viewing the sales invoice involved or with your bank account. Allocate the receipt either directly to a specific invoice or to Customer credits for that customer, where Manager will automatically apply it to outstanding invoices and/or save for future allocation. Note that transactions involving money into or out of the company cannot be entered via journal entries.
No expense account is involved in this process, because you have not had any expenses.
It sounds like you could use some introduction to double-entry accounting. I recommend spending a few hours at http://www.accountingcoach.com. It’s free and easy to understand. Also paying an accountant to help you set things up correctly is generally well worth the expense for the trouble and potential legal problems you avoid later. I also suggest creating a dummy company in Manager for experimentation. You can have as many companies in Manager as you want.
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