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MYOB – Why did Sales Income go to the Accounts Receivable Account?

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MYOB – Why did Sales Income go to the Accounts Receivable Account?

MYOB – Why did Sales Income go to the Accounts Receivable Account?

ClientI created some invoices and when I went to look at the Profit & Loss the amounts are all in the Accounts Receivable (A/R) – Why? Doesn’t income go to the Sales/Income account?

HowThe handling of the invoice amounts is correct – a sale sits in the A/R until it is paid – every transaction has a Debit and Credit side. If you open an invoice and hold Ctrl key then hit “R” and  let go, you will see Dr goes to A/R and Credit goes to Sales/Income. When you receive the customer payment, a credit is made for the amount from the A/R account and a DR to your bank account to show the deposit of the payment (or Undeposited Transactions if you use that when banking several cheques together).

If you want to see the Profit and Loss WHEN you are actually paid, then create the P & L Cash Basis report which is under Accounts> Small Business Entity.

If you want to put certain sales to certain Sale/Income accounts, allocate directly to a new “4” account in a Service/Professional Invoice or allocate to the “I Sell” account in the item, if using Item Invoicing.

Need help? Not sure? Call for FREE 30min advice / strategy session today! 0407 361 596 Aust

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Email info@accountkeepingplus.com.au or call 0407 361 596 Australia

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Author: accountkeepingplus

Administration, bookkeeping and compliance for small business, and Self-Managed Super Funds (SMSF) Training, trouble-shooting, or we can do the books and payroll for you! Self Managed Superannuation Fund Service Provider, Free support MYOB Certified Consultant, Reckon/QuickBooks Professional Partner.

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