Sales
Customers
Sales → Customers holds everyone you invoice: name, billing details, tax registration, payment terms and currency. Set the payment terms here and every invoice you raise for that customer inherits the right due date.
Estimates (quotes)
Sales → Estimates is for a price you have offered but not yet earned. An estimate posts nothing to the ledger — nothing has happened financially until the customer accepts. When they do, convert the estimate to an invoice rather than retyping it, so the numbers cannot drift apart.
Invoices
Sales → Invoices → New raises an invoice. Choose the customer, the date, the due date, and add lines with a description, quantity, price and tax.
When you approve it, the invoice writes its own ledger entry: debit Accounts Receivable, credit the income account on each line, and credit the tax account for any tax charged. You do not post this yourself.
Your customer can be emailed the invoice with a payment link.
Receipts
Sales → Receipts records money arriving. Match the receipt against the invoices it pays — this is the step that clears those invoices from your AR Aging and stops you chasing someone who has already paid.
A receipt posts: debit Bank, credit Accounts Receivable.
Record part-payments as they arrive rather than waiting for the balance. The invoice stays open for the remainder.
Credit notes
Sales → Credit Notes reverses an invoice in whole or in part — a return, an overcharge, a goodwill discount. Never delete an invoice the customer has already received; issue a credit note, so both documents exist and the history explains itself.
Recurring invoices
For customers billed the same amount on a schedule, set up a template under Sales → Recurring. Invoices are raised automatically on the due date.
Purchases
The purchase side mirrors the sales side.
Suppliers
Purchases → Suppliers holds everyone who bills you, with their terms and currency.
Purchase orders
Purchases → Orders records what you have committed to buy. Like an estimate, a purchase order posts nothing to the ledger — it is a commitment, not a cost. Convert it to a bill when the goods or the invoice arrive.
Bills
Purchases → Bills → New records a supplier invoice. On approval it posts: debit the expense, COGS or asset account on each line, debit any reclaimable tax, and credit Accounts Payable.
Enter bills when they arrive, not when you pay them. That is what makes your AP Aging tell you what you actually owe, and what makes your Profit & Loss show costs in the month they belong to.
Payments
Purchases → Payments records money leaving, matched against the bills it settles: debit Accounts Payable, credit Bank.
Debit notes
Purchases → Debit Notes is the supplier-side equivalent of a credit note — for goods returned or an amount over-billed.
The habit that keeps the books right
Record the document when it happens, and match the payment when it arrives. Invoices and bills establish what is owed; receipts and payments clear it. Skipping the matching step is the single most common reason an AR Aging report stops being believable.