How To Create Simple Cash InvoicesCopy

In GnuCash, a “Cash Invoice” signifies a sale where payment is expected immediately, unlike a regular invoice for credit sales. It functions like a sales invoice, detailing goods/services, but it’s used for transactions where money changes hands right away, often resulting in an immediate cash/bank receipt, streamlining revenue recognition in a Cash-Based Accounting system.

Cheat Notes:

Step 1: Start a new invoice

• Navigate to Business > Customer > New Invoice.
• You can leave the Invoice ID blank for GnuCash to auto-generate one, or enter your own number.
• Ensure the correct customer is selected. You can type the name or use the “Select” option to search.
• Set the Date opened to the current date, or change it if necessary. 

Step 2: Add items and calculate totals 

• In the itemized list section, enter the details for each good or service.
• For each item, input the:
  • Description
  • Action
  • Income Account
  • Quantity
  • Unit Price
• GnuCash will automatically calculate the total for each line item and the overall invoice total. 

Step 3: Post the invoice

• Click the Post button on the toolbar.
• Enter the post date and the due date for the invoice.
• Posting moves the transaction to your accounts, such as booking revenue to your income account and the amount owed to your accounts receivable account. 

Step 4: Process payment and print (Optional)

• After posting, you can select Pay from the toolbar to record the payment from the customer.
• You can then print the invoice by selecting the “Print Invoice” option.