To set up
GnuCash to handle accounts receivable and accounts payable
for a company the following preliminary steps must be done.
There are many different ways to set up a business account
hierarchy. You can start with the Business Accounts setup which is
available from the New Account Hierarchy assistant, or you could build one
manually. To access the prebuilt Business Accounts, start
click on → and
proceed until you see the list of available accounts, select Business
The prebuilt Business Account hierarchy will not meet your needs exactly. You will need to make adjustments for the hierarchy to function well with your particular situation. It should be close enough that it is recommended you begin with it.
Tax Tables can used to determine the tax for customer invoices (or vendor bills).
A tax table can be assigned to an invoice line or bill line.
The default invoice line tax table can be assigned to each customer and the default bill line tax table can be assigned to each vendor.
The default tax table for new customers or new vendors can be specified in the Book Options window which can be accessed by → → tab.
Tax Tables are maintained using the Sales Tax Table editor which is accessed via menu → . The following fields should be entered:
Name This is the tax table name.
Type Either Percent % or Value $ .
Value This is the percentage or value depending on Type.
Account This is the account to which tax will be posted. For tax collected from customers, this should probably be a Liability account as it must be payed to the government. For tax paid to vendors, if tax laws allow tax paid to vendors to offset tax collected from customers, this should probably also be a Liability account (even though it will usually have a debit balance) so that the net tax owed to the government can be easily observed.
If you set up Tax on Purchases and Tax on Sales as subaccounts of Liabilities:Tax then the net tax will be rolled up
and can be seen in the
GnuCash Accounts tab.
If unsure about tax law requirements, get professional advise.
After you have built the account structure and defined your tax tables, register the
file as belonging to your company by filling in the data requested in
the Sezione 10.3.3, «Business Book Options Tab» accessible from the
→ menu item.
Define the format and last used numbers of codes such as customer, invoice, vendor, bill, employee, expense voucher, job number and order. See Sezione 10.3.4, «Counters Book Options Tab».
Set options on the Business tab of the
GnuCash preferences, which is
accessed via →
( → on Mac OS X).
See Sezione 10.2.3, «Impresa».
Billing Terms can be used to determine the payment due date and be a guide for determining discount for early payment of invoices (or vendor bills).
Discount for early invoice payment is not implemented. There are 2 ways this may be done, although neither is recommended, and professional advise should be used to confirm that regulations are being complied with:
You can specify the billing terms on each invoice/bill. Invoice billing terms will default from the customer billing terms. Bill billing terms will default from the vendor billing terms.
Billing Terms are maintained using the Billing Terms Editor which is accessed via menu→ . The following fields should be entered:
Name The internal name of the billing term. For some examples of billing term names and descriptions see http://wiki.gnucash.org/wiki/Terms
Description The description of the billing term, printed on invoices
There are 2 types of billing terms, with different information to be entered
Due Days The invoice or bill is due to be paid within this number of days after the post date
Discount Days The number of days after the post date during which a discount will be applied for early payment
Discount % The percentage discount applied for early payment
Due Day The day of the month bills are due
Discount Day The last day of the month for the early payment discount
Discount % The discount percentage applied if paid early
Cutoff Day The cutoff day for applying bills to the next month. After the cutoff, bills are applied to the following month. Negative values count backwards from the end of the month.