question about income account and cash advance account

[Derek Atkins]

John Griessen <john_g at cibolo.com> writes:

> Suppose I have an income account called cash advance, and then create an
> invoice, and then pay the invoice from the advance.  Would that work OK
> to pay an invoice from a current asset instead of an income?

No.

> Do you handle this differently and why?

Yes, because that way makes no sense.  Just use the stand invoice
and process payment features in the same way you would use them
if you were paid in arrears.  Create an invoice when you want to
bill them.  Process Payment when they pay you.  Don't worry about
the order of operations.

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

-derek

-- 
       Derek Atkins, SB '93 MIT EE, SM '95 MIT Media Laboratory
       Member, MIT Student Information Processing Board  (SIPB)
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