Overview

After customers receive invoices for their orders, payments are often made on the same day or at a later time. Journal entries are needed to track the movement of cash.

Configuration

Required parameters

Fields	Description
`date`	the calendar date of when the payment was made
`amount`	the full amount of the payment

Required accounts

Account	Description
`cash_account`	Debit account for the payments. e.g. Cash
`ar_account`	Credit account for the payments. e.g. Account Receivable

Walkthrough

For example, let's say John purchases a Playstation controller from Sony. He pays $70 via his credit card.

Event #1: Invoice is issued

An Invoice is issued for the customer John on the day of 1/1/2022. Subsequently, journal entries are created on the line item record for $70.

Date	Account	Debit Amount	Credit Amount
01/01/2022	Account Receivable	$70
	Revenue		$70

Event #2: Payment is made

When the payment is made on the same day, there is no more collection needed so the Accounts Receivable account is credited the full amount of the purchase, and the asset account for cash is debited.

Date	Account	Debit Amount	Credit Amount
01/01/2022	Cash	$70
	Accounts Receivable		$70