Time for action – setting up billing terms and adding customers
Let us say that you are about to make your first sale on credit. You will soon be creating an invoice and sending it to your customer. Prior to that, we are going to do two preparatory steps. First, we are going to set up a billing term of 2/10 Net 30. Next we are going to add the name and other details of Acme Inc, the customer, from whom you are about to win a contract:
Prerequisites: Make sure you have an Accounts Receivable account in your account hierarchy. Typically, you will find this under Assets | Current Assets. If you do not have one, go ahead and create a new Accounts Receivable account. This should be of type A/Receivable and, preferably, have Current Assets as the parent.
Register Your Company: After you have built your account structure, you will want to register the GnuCash file as belonging to your company. This information is required for creating the invoice. Click on File | Properties. In the Business tab,...
