Entering Invoices -- Basic Concepts
What is required?
Let's step back and first ask, 'Why do you want to write an invoice? The answer is to get paid for something. That something can be a tangible item like equipment you have sold or an intangible item like a service you supplied.
So what is required to write an invoice?
A 'Contact' to bill, and
An account to record the invoice transaction.
Here are the steps to set up both. First, how to set up a contact type, 'Client.'
The 'Contact'
The 'contact' is the person or organization that you want to charge for supplies or services. To enter a contact in TeemWork, click the 'Contacts' menu bar selection. The menu bar is shown in the first slide.
The 'Contacts' window is illustrated below.
It is possible for a user to select a different contact type. In the slide below, we see that the user Janet Taylor has three contact types she may view.
She selects the client contact type. The contact card is displayed when a contact row is clicked. In the next slide, the contact, 'JP Restaurants inc' is displayed.
When the 'Show Invoice List' button is clicked, the contact's 'Invoice' window opens. From this window a user may proceed to the 'New Invoice' window where they may enter an new invoice.
The Revenue -- Services Sold
Here are the steps to set up a revenue account.
First open the 'Accounting' menu bar selection. Next select the 'Manage GL Accounts'. The slide below illustrates the 'Accounting' menu bar selection and the 'Manage GL Accounts' option.
Below is a slide of the 'Manage GL Accounts' window.
GL accounts are simply categories.
A revenue account is a GL account. The categories used by your team depends on the level of accounting detail that your team requires. For more information about GL Accounts, read, 'What are GL Accounts?'
The top portion of the GL account window displays a list of all the GL accounts. The bottom tabs show the details of the highlighted row in the list. In the above slide, the revenue account is highlighted in yellow.
Here is how the revenue account was added to the GL accounts list.
First, click the first field to the left in the tab. It is labelled, 'GL account.'
In the example below, the GL account Number entered is, 3110. Revenue GL account Numbers begin with '3'. Add a new GL account number in the field.
In TeemWork, GL account numbers may be alphanumeric and of any length up to 50 characters. Usually, all GL account numbers are shorter, are numeric and are all of equal length. In our example, we will use 4 digit GL account numbers. To learn about the GL Account types, read, 'What are the GL Account Types?'
Next, click the drop down menu labelled, 'Type.' Money earned belongs to the 'Revenue' category Type. Select 'Revenue' from the list.
After the GL account Type has been selected, enter a GL account name in the far right field. The name helps identify the GL account. The name is entered in the field labelled, 'GL Account Name.'
In this case, the name is 'Services sold'. The next slide shows the GL account details in their respective fields.
Next, you may enter a comment in the 'Comment' field.
Save the new GL 'Revenue' account. Click the 'Save' button to finish adding the account.
When the GL account has been saved, you can go and enter your first invoice. Everything is set and ready.
Related topic:
To learn how to enter an invoice, read, 'How to enter an invoice?'
For more information about GL accounts, read, 'What are GL Accounts?'
Return to Accounting - Table of Contents.