How Do I Track If An Invoice Is Paid Or Not?

Profitworks Free Accounting Software In Excel

To download the full manual click here.

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What You Need To Do In Summary

To track your invoice you need to ensure the customer is set up in the customer listing, the customer number you use for the customer is the first section of your invoice number and you need to use that same invoice number in column D "Cheque/doc #" of the general ledger where you enter the transaction. Then when the invoice is paid you need to enter the transaction using the same invoice number in column D "Cheque/doc #" of the general ledger. The collections tab will then track whether or not the invoice has been paid. 

Creating A New Customer

1. Go to the worksheet labelled “Customer Numbers”

2. Enter the number you wish to assign to the new customer in the column titled “Customer Number”. Ensure you enter
the customer number on a new row to not type over an existing customer number. It is also important to ensure
each customer has a different customer number or it will create errors in the system

3. Enter the customer name in the cell to the right of the customer number you just entered, this should be in the
customer name column

Setting Up Your Receivables Invoice Tracker

1. Go to the worksheet labelled “Collection System”

2. Enter the account number for your accounts receivable account in cell C4

3. Ensure the account number in cell S2 matches that of the account number in cell C4. If it does not select the same
account number from the drop down arrow in cell S2.

4. Enter the number of days you allow for payment on all your invoices in cell F3

5. Delete the entire row 7 which contains an example for illustration purposes only

Tracking Your Receivable Invoices

1. Enter the transaction and journal entries created by the invoice in the general ledger

2. If this is a new customer enter the customer number on the “Customer Number” worksheet. Follow instructions to do
this from the above section titled “Creating A New Customer”

3. Go to the worksheet labelled “Collection System”

4. Enter the customer number for a new invoice in the column titled “Customer #”. This should automatically display
the customer name on the left hand side

5. Enter the new invoice number in column titled “Invoice #”. This should automatically display the amount outstanding
for the corresponding invoice, if you have properly entered your journal entries for the transaction in your general
ledger.

6. Enter the issue date stated on the invoice in the column titled “Issue Date”. This will automatically calculate the due
date and display it in the column titled “Due Date”

7. You will notice to the left of each invoice line there is space to keep notes on all communication related to collecting
a particular invoice. These cells are optional and not required to be filled in for the program to work

8. The collection system will automatically show the invoice is paid and that there is $0.00 due when the journal entries
for receiving payment of the invoice are entered in the general ledger

9. The collection system will then automatically tabulate the total amount receivable, the amount receivables past due
and the amount receivables not past due at the top of the sheet

10. Important: For the collection system to work properly you must enter the invoice number in the general ledger in the
“Cheque/doc #” column for all journal entries related to the issuing and receiving payment of the invoice. If this is not
done the “Collection System” worksheet will not display accurate information

To download the full manual click here.