Allocating payments of invoices, to income?

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  • Updated 3 years ago
Im going a bit crazy, how do i receive payment through a bank feed, allocate it to an invoice and have it go to income? if i allocate it to income via the new tab, it doesn't register as paid, but if i just allocate to invoice, it doesn't register as income?
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Niamh Campbell

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Posted 3 years ago

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Kununurra Taekwondo

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Hi Niamh - I have been doing the same thing.  If you have already created the invoice then you should have already allocated the income code within the invoice.   You can then either pick up the transaction in the bank account and allocate the receipt to the created invoice or do it in reverse and receive the payment in the invoice itself and nominate which bank account the payment gets matched to.  I have tried both methods.  The main thing to remember is that the income code should have been allocated at the time of creating the invoice and when the invoice gets paid all you are doing is recording the payment of the invoice. If you are doing accrual accounting the transactions behind the scene happen automatically and the income will be recorded at the time of creating the invoice.  If you are doing cash accounting then the income will not become apparent until the invoice is paid.  Hope this makes sense.  My 1st venture into providing assistance. Sue Riley