This section relates to legacy Aged Trading accounts that were used in Version 5 of Phoenix and earlier. See Legacy Aged Trading Accounts |
Customer transactions are invoices, payments (receipts) and credit notes.
Accrual Entry
Customer accounts use the accrual accounting model. This means that you allocate the invoice entries to one or more income categories when the invoice is raised, that is, you record the revenue against the correct income category as soon as the sale is made. You do not need to allocate the income later when the invoice is finally paid.
A later payment then simply involves a transfer between the customer account and the bank or other account where the payment is deposited. This payment transfer can be automated using a special Customer Payments category setup for the purpose.
Entering a customer transaction is therefore no different to entering a bank account transaction, except that the transaction types are Invoice, Payment and Credit Note instead of BPay, Cheque, Withdrawal, Deposit and so on.
