Income Received

Tillytaptoes

Good morning, I am new to the forum but would like to use this for support in areas I have not come across before.
If income is received into the account, income as in funding someone has given us. Do I still need to raise the invoice for this in SL and apply the cash allocation to the SL invoice. As the income has been received without us sending an invoice I just want to check if this still needs to go through SL or can this just be a DR Bank and CR income transaction via the cash book.

Many thanks in advance

Pian32

If you receive cash direct without an invoice then you do not need to put it through the sales ledger. You'd Debit the appropiate cash/bank account and credit the appropriate income account. (If it's a loan then loan account, if a grant then I'd separate it into a separate income account so as not to distort other ratios. etc)