7. How to Create Invoices in GnuCash -Part 02

In Part 1of Creating Invoices in GnuCash, I talked about four things you need to have in place before you begin creating invoices. You should set up the Sales Tax Table, Register Your Business in the system, Set up your Accounting Period and your Billing Terms. And I walked you through the steps of setting up each feature. If you haven’t already reviewed Creating Invoices which is part 1 of this tutorial I would suggest you go back and review it now so that you will be able to follow along with this tutorial.

In this tutorial creating invoices Part 2, I will be focusing on accounts receivable as I mentioned in the first tutorial 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,

  1. Customers”
    People or companies to whom you sell products or services on credit.
  2. Invoices”
    The physical invoice you send to a customer to request payment. The invoice contains an itemized list of things you sold.
  3. Customer Jobs
    Customer Jobs is (optional) Customer Jobs are a mechanism by which you can group multiple invoices to a particular customer.
  4. Process the Invoice Payment

In this tutorial I will go through each component in detail.