tracking Accounts Receivable

kurtis carlson's Avatar

kurtis carlson

24 Jan, 2021 08:28 PM

I'm running a business with cash based accounting. This is usually straight forward. When something is purchased, I log it in the checking or credit card register and assign it an expense category.

I'm having difficulty tracking things like Accounts Receivable where I need to see what is outstanding to collect, but cannot enter in the check register with income category until payment is received.

Could you please offer some suggestions for handling this in Money Dance?
Thank you!

  1. 1 Posted by Stuart Beesley ... on 24 Jan, 2021 08:32 PM

    Stuart Beesley - JUST A FELLOW USER's Avatar

    Perhaps log it in to an expense category called AR, and then when you actually receive it, create a new Txn and move it out of AR into the actual category..?

  2. 2 Posted by Kurtis Carlson on 24 Jan, 2021 08:59 PM

    Kurtis Carlson's Avatar

    Hey Stuart,
    I'll test this out.
    Is there a way to hide an expense category from showing up on an expense report?

        On Sunday, January 24, 2021, 12:32:32 PM PST, Stuart Beesley - JUST A FELLOW USER <[email blocked]> wrote:


  3. 3 Posted by dwg on 24 Jan, 2021 09:07 PM

    dwg's Avatar

    I'm a fellow user.

    In the parameters setting for the report exclude that particular expense category. Towards the bottom of the parameters screen click on "By Individual" then all categories will be shown in the selection box and you can exclude it.

  4. 4 Posted by sprimost on 25 Jan, 2021 12:14 AM

    sprimost's Avatar

    *From*: sprimost - Not IK support

    Accounts Receivable, by definition, is a current asset...i.e., an
    increase in Net Worth. AR is not an expense category by accounting rules.

    I know, it might sound complicated, but I would set up _asset__ accounts
    for each client, so that you can run a report by accounts of transactins..

    When a "sale" is made, it is a reduction in inventory (another asset
    account) plus gross profit (the difference between the cost of goods
    (inventory0 and what you charged. Obviously, if you have labor, that
    would be an expense that is increase and charge against the sale.

    Payment of a "sale" would be an increase in Revenue, (an income account,
    and a reduction in the account receivable.

    Running a report by account, would show outstanding amounts (a positive
    number, how much inventory uoiu have. A report of income and expenses
    will should gross revenue, and constituent expenses.

    Just a suggestion.


  5. 5 Posted by Stuart Beesley ... on 25 Jan, 2021 04:51 AM

    Stuart Beesley - JUST A FELLOW USER's Avatar

    ... so same approach, but when you create the first txn just use an asset account as the category(transfer) field (instead of expense category) and then the same again with a negative amount for the receipt.

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