Hi - I’ve just discovered that my sales have doubled in my P&L report - which would be lovely if it were true but its not! I can see this is because I am posting both my invoice AND the receipt to my income account called ‘sales’. I think that one or both of these should be posted to ‘accounts receivable’ - but this doesn’t show in the accounts list when I go into edit either the invoice or the receipt. Can anybody point me to a step by step instruction on how to record invoices and receipts please?
I assume you have activated the customer tab and created customers to assign sales invoices to?
https://www.manager.io/guides/7018
The line items on the sales invoice can be posted to an income account. This provides the credit. The debit goes to accounts receivable. The receipt is allocated to accounts receivable, providing the credit for that transaction. The debit goes to the cash or bank account. Read the Guides about sales invoices and receipts.
Thanks Tut - yes that makes sense - but when I go to edit the receipt - the AR account does not show in the drop-down (under equity accounts) - so not sure how I can change this??
Thanks Tony and yes, did that - the issue is how to allocate receipts to accounts receivable - which does not show in the accounts list when I try to edit the receipt…
You should not allocate them to accounts receivable. You should put them in the correct account of P&L. Manager by itself will open an account in accounts receivable and will close the position once you will be paid
Ah thanks Davide - that makes sense to me. I’ll try that and see what happens…
This is not true for the situation described, @Davide. @MartinL is trying to record a receipt against a sales invoice, so the transaction must be allocated to Accounts receivable. Only in case of a cash sales (without a sales invoice) would you allocate directly to an income account.
@MartinL, I think you might be confused by appearance of Account in two places on the receipt form. The first one selects which cash or bank account the receipt will be debited to:
The second chooses which account will be credited, on a line item by line item basis:
If Accounts receivable does not appear in that second dropdown list, you have not properly created a customer. Read this Guide: https://www.manager.io/guides/7226.
As a note, Accounts receivable will not be found under Equity. It will be under Assets, where it belongs. Accounts receivable are assets, because they have the potential to bring in future cash flow. Once you receive money against a receivable, the value of the asset is transferred to your bank or cash account. This is what the receipt form does for you.
All good Tut - I think I have it working fine now. The sales invoice allocates to the income account, then the receipt posts to the bank account in the first drop down and the AR account in the second. So far so good…many thanks for your help. (Though I do find the debit and a credit thing is very confusing!)
Read the Guide about designing a chart of accounts.