When an sales invoice has been issue for an item for non-inventory item called HOA Dues for $35.00. this amount is recorded in “Accounts receivable” as %35.00 owing. When a payment of $35.00 has been received for the same item, the “Account receivable” stills shows $35.00.
What are we not doing correctly?
Thanks You
You must apply the receipt to Accounts Payable and the customer’s subaccount. Include the specific invoice if you want.
Hello,
Thank you for your quick response.
However, isn’t Accounts Payable used when you owe someone money, or you have purchased supplies. Form supplier? We do not have suppliers and other than a handful of expenses, we just homeowners whom we bill every month for a non-inventory item which we call HOA Dues, for $35.00. When receiving a payment on these sales invoices, if we select “Received Money” when viewing that sales invoice, then after choosing our bank, where the money is received into, then we are presented with a screen where we are to input information regarding that sales invoice. We leave the first item blank which defaults to Account called “Accounts Receivable” we then add another line and in that item column, we select the item that we invoiced for (HOA Dues), it automatically selects the account that HOA Dues is assigned to in the Income category, fills in the amount of $35.00. I get the feeling that this is not the correct way to do this.
Please. advise.
Thank You
@Tut meant to write Accounts Receivable above, not Accounts Payable. Otherwise, do what he said.
Assuming you’re using accrual-basis accounting (which I can assume since you mention the Accounts Receivable account), do not credit the dues income account when you receive payment. You’ve already done that when you issued the invoice, when the invoiced amount was debited to A/R and credited to the dues income account. When you receive the money, you need to credit A/R and debit Cash (or your bank account).
Just leave everything the way it appears in the screenshot above. You can add some descriptive text if you want (“Check no. 1234” or “Payment received”). Manager will credit and debit the appropriate accounts.
Click Receive money, enter which account you are receiving it in (cash/bank) fill out description then click create.
It seems like you are doubling up.
If you created the sales invoice there is no need to enter additional items on in the receive money screen, the figures should already have been pulled through from the invoice.
