question about income account when a sale occurs

John Griessen john_g at cibolo.com
Wed Feb 23 15:10:36 EST 2005


What would the account flow look like for a prepayment for buying materials?

Does an invoice allow handling that prepayment income so as to keep it all 
related to a job invoice?  Can you enter the payment for an invoice before it is 
complete?

John Griessen

Derek Atkins wrote:
   When you buy
> inventory it's a straight shot from Checking -> Inventory.  Then when
> you use inventory you account for it as inventory -> COGS.  When
> you're paid it's income -> checking.


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