Hi! I am a sole-proprietor with non-inventory items only (for website design). I have an unpaid invoice that is showing up in both the Sales and Accounts Receivable sections on the Summary page. Is that operating as expected, or have I possibly done something wrong? To me, it makes sense that it is in Accounts Receivable, because it is pending payment. I am surprised that it is showing up in Sales when it is unpaid.
Thanks!
Zak
Why are you surprised? Isn´t invoicing a customer sales?
Hi Mark!
Yes. You are correct. It sounds like from your reply that it is working as designed.
You need to learn about accrual v cash basis accounting
Try www.accountingcoach.com for a free online learning site
@Zak any report including Summary screen can be shown on either accrual or cash basis. Cash basis will exclude your unpaid invoices.
See: Choose between accrual or cash basis accounting | Manager
Joe, Lubos, and Mark -
thank you for your replies. This now makes sense to me. Happy Holidays to you all.