we fixed a client’s curtain
we generated a curtain maintenance service account under operating expenses
credited cash under maintenance
and debited cash for service revenue
are the following steps right? please help
It is not possible to answer your question based on your screen shots. You have not shown or written what type of transactions they are. You only mentioned debiting and crediting cash. But you cannot do either directly in Manager. The program determines which account(s) to debit and credit based on the context of the transaction.
Regardless, crediting a cash account occurs only when money is actually paid out from the company. So steps that result in a cash account credit are only correct if you paid someone outside the company to fix the curtain.
Please describe exactly how you handled this situation and what transactions you entered.
we received $20 Revenue for fixing a client’s curtain
we bought a track part and cost us $7 to repair it and one of our employees did the repair
You have options. I assume, in the following, that $20 includes both parts and labor. I also assume the $7 was the cost of the part, not additional costs for repairing something.
You could purchase the part, posting its cost to some expense account. Issue a sales invoice for $20, posted to Sales - services. Receive money from the customer, posting to Accounts receivable, the customer and the invoice. Pay your employee as you normally would.
If the customer paid at the time of service, you could just create a cash or bank receipt for the $20 instead of raising a sales invoice. Post to the same Sales - service account.
You could also treat the part as a billable expense, passing its cost directly through to the customer and never posting it to your expense account.