Invoicing in accounting terms is a part of accounts receivables. Accounts Receivable. is money that’s owed to you, such as your invoice to clients. Sales invoices serve as an official record of a sale for both the buyer and the seller.
GnuCash has an integrated accounts receivable system. It is within this account that the integrated A/R system will place transactions. You generally do not work directly with this account. You generally work with the four integrated GnuCash A/R application components
The four components are:
- Customers – People or companies to whom you sell products or services on credit.
- Invoices – The physical invoice you send to a customer to request payment. This invoice contains an itemized list of things you sold.
- Customer Jobs – Customer Jobs is (optional) Customer Jobs are a mechanism by which you can group multiple invoices to a particular customer.
- Process the Invoice Payment
But before you begin invoicing in Gnucash there are four things you should set up first.
1. The Sales Tax Table
2. Register your Business in the system
3. Set up an accounting period so the system can properly calculate your profit/loss calculations and net assets calculations.
4. Set up Billing Terms