Accounts Receivable Question

[Stephski]

I have searched the existing posts extensively, but can't find quite the same
problem.  

I am a new user and I am inheriting an established account that I am not
certain was set up correctly, or I'm just an idiot.

Due to the complexity of our billing, we generate invoices outside of
GnuCash.  When I attempt to enter a new invoice as a "Receivable" against a
specific subaccount for which the work was done, another entry for the exact
same amount shows up as a "payment" within the subaccount.

Here is the process I am using:
I go to the subaccount set-up under "Assets:Receivables:Company Name" (this
subaccount represents a company for which we perform labor during the
month).
I open that subaccount and enter the invoice details, choosing the transfer
account of "Assets:Receivables:Company Name."
That entry shows and and automatic one appears as a payment for the same
amount in the same subaccount.

In the past, they got around this problem by entering invoices into "Income"
accounts, and when the payments went in, they were posted against the
"Assets:Receivables" accounts.  From an accounting perspective though, that
seems bass ackwards.

Am I incorrect in my thinking and the old way was really the right way (if
so, it makes it tough at year end for cash accounting where we need to
ignore receivables)?
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