i have two source of income and i entered them in chart of accounts as CAR and GENERATOR, i have created one sales invoice to my customer with two things, CAR 50000 USD and Generator 24000 USD that gives total 74000USD , when my customer came to pay he paid full payment for car only that he bought 50000 USD, i opened his invoice and clicked on receipt at the top to pay for the invoice.
my problem::::: when i went back to summary the system divided that 50000 USD into car income and generator income. how to make that payment enter in car income only??
What edition (Desktop, Server, Cloud) and version of manager are you using?
What basis of accounting are you using (Accrual or Cash)?
Show a screen image of the edit form of the invoice
here are screen shots,
its a desktop edition version 19.11.21 and i am using cash basis of accounting
Edit form of invoice
generated invoice
when receiving payment of the car
here below is the summary for cash basis
i wanted that 50000 to be for car only but it divided into both incomes accounts @Joe91
To do this you will have either switch to Accrual accounting or issue two invoices.
When using cash accounting, the program allocates the payment pro-rata to the accounts on the the invoice
there is no use of invoices in cash basis accounting because there is no credit involved. only receipts and payments are sufficient. but in your case you are extending credit to your customer and yet claim to use cash basis accounting which is not correct.
anyway, irrespective of the accounting method used, you cannot post receipts to particular line items on an invoice. receipts are recorded against the invoice as a whole.
you should issue separate invoices to achieve what you want or receipts in case you are using cash basis accounting.
Technically, this is not quite true. Invoices can still be used, but their financial impact will not be fully reported when issued, only when money is paid or received. So they are somewhat pointless under cash basis accounting. Yet they are useful in getting the customer to pay you.
There are two aspects of cash versus accrual basis accounting:
- When income and expenses are reported: Manager is actually a full accrual basis system with an option for cash basis reporting. Behind the scenes, all necessary information for accrual basis accounting is still being recorded, and you can switch back and forth between the two reporting methods.
- When income and expenses should be recognized: The different philosophies behind the two accounting approaches can lead to differences in when you enter expenses, since they should be recognized during the same accounting period as the income with which they are associated. If you use sales invoices, the reporting aspect will be taken care of by the cash/accrual selection. But recognition of expenses during appropriate periods requires different approaches to when they are entered. (That’s a simplified answer.)
Yes there is and they are an essential part of business credit control, so are not “somewhat pointless”.
Cash basis accounting is only there for income tax purposes.
A tradesman issues Sales Invoices for 50,000, all on credit terms - pay later.
Under cash basis, if they only received 42,000 in the year, their income for tax purposes is 42,000.
Under accrual basis, their income for tax purposes is 50,000.
The recorded Sales Invoices provides the management tool to follow up on unpaid accounts.
I chose my words poorly. I should have said they could be pointless if you are not actually extending credit.