Income Received

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Tillytaptoes
Tillytaptoes Registered Posts: 4
in General accounting discussion
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

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  • Pian32
    Pian32 Registered Posts: 474 Dedicated contributor 🦉
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    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)
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