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:

  • The Sales Tax Table
  • Register Your Business in the system,
  • Set up your Accounting Period
  • Setup 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 the video tutorial above, I go through each component in detail.