Receiving a payment from a customer

[David Cousens]

On 08/20/2015 06:18 AM, Carla Ford wrote:
>
>
> I watched the videos on YouTube but when I go to process
> payment under Customer I get a notice that says “You have no valid “Post To”
> accounts. Please create an account of type “a/Receivable” before you continur
> to process this payment. Perhaps you want to create and Invoice or Bill first.
>
>
>
> I have already created invoices for my Customers.
>
Carla,

An Invoice is implicitly associated with an Asset:AccountsReceivable 
account which records money owing to a business by customers (an asset 
of the business)  for which a demand for payment (Invoice) has been sent 
to the customer. You will need to create this account if it does not 
already exist in your chart of accounts. Depending upon the detail you 
require to record you could also create a subaccount of 
Asset:AccountsReceivable Asset:AccountsReceivable:CustomerName for each 
customer and just have the Accounts Receivable account as a placeholder 
to accumulate the total amount owing to your business.

When you create an Invoice to a customer, Gnucash will create a credit 
entry for the requisite amount in an Income account (specified when you 
enter the item details into the invoice -here you can also have a 
sub-account for each customer if you require to know how much income 
each customer generates for you or you may break down your income by 
product or both) and a corresponding debit entry for the same amount in 
the Asset:AccountsReceivable:CustomerName account. This is specified 
when you post the invoice and the posting dialogue allows you to select 
the Asset:AccountsReceivable account you wish to post it to.

When you receive a payment from the customer and record the payment of 
the invoice a credit entry for the 
Asset:AccountsReceivable(:CustomerName) and a corresponding debit entry 
to your Bank account. This is in effect a transfer of the amount from 
AccountsReceivable (money owed to you) to your bank account (money 
received by you).

Hope this helps

David
>
>
> Could you please help me out with this problem?
>
>
>
> Thanks
> Carla Pitre Ford
> cford1961 at hotmail.com
>
>    		 	   		
>

-- 
*Dr David R Cousens* B.Sc.(Physics), M. Prof. Acc., Ph.D. (Physics),
Grad.Cert. Ed.