How do I categorize an invoice payment?

When you buy or sell a product, the reported income or expense for these products will be associated with the income or expense category (account) configured in Product Settings.

Here's an example of how income is categorized for invoice payments:

You sell apples and oranges. You create an invoice for 100 of each, to a total of 200 fruits. "Apple" is related to the income account "Apple Income," and "Orange" is related to the income account "Orange Income." The total of the invoice is $200.

You receive the payment in your Checking Account (the account on the transactions page for this transaction will be Checking)

  • The category on the Transactions page will be displayed as "Invoice Payment."
  • The payment will appear on the Transactions page as an "Invoice Payment."
  • In this case, even if the category for the transaction (for the money received from the customer) is called Invoice Payment, the income would show in your Apple Income ($100) and Orange Income accounts ($100) in Reports.
  • In this case, even if the category for the payment transaction is called Invoice Payment, the income would show in your Apple Income ($100) and Orange Income accounts ($100) in Reports.

To check the income or expense associated with a product:

  1. Open the Sales menu and choose Products & Services.
  2. Click Edit (the pencil icon) beside the product.
  3. If the Sell this checkbox is on, you'll see an Income category here. If the Buy this checkbox is on, you'll see an Expense category here. You can select one or both.

To edit invoice payments assigned to an incorrect category: 

    1. Open the Sales menu and choose Products & Services
    2. Click Edit (the pencil icon) beside the product.
    3. Update the income or expense category. 
    4. Navigate to the Invoices page.
    5. Click the drop down arrow beside the Invoice and choose Edit.
    6. Delete the product from the Invoice, re-add it, and click Save. This will apply the change. 
  • Check Reports to double check your work. 
  • Check Reports to double check your work.