Now that we have validated our invoice, Odoo has automatically created the accounting transactions to increase our Accounts Receivable assets and the accounting transaction to record the sale. We can now open the journal entries back up and see the newly posted transaction:

The number assigned to this specific invoice is INV/2017/0002 for the amount of $94.88.

We can now click on this journal entry to see the details of the transaction:

In the Journal Items, you can now see the same figures we examined on the invoice posted with the correct accounts. The 101200 Account Receivable account has been debited by $94.88 to show the new current asset that represents this customer invoice. The customer owes the company $94.88. As you create invoices and customers owe you money, Accounts Receivable will continue to grow.

Next, you will see that the tax for the invoice is a credit to the 111200 Tax Received account. Typically, you will then use this Tax Received account to later send that money on to the appropriate government agency. This, by the way, would require you to write a check that would credit your bank account (reducing its value) while posting a debit to the Tax Received account.

Finally, note that the 200000 Product Sales account has been credited with $82.50. This account will continue to be credited for products you sell.

Now, let us see what happens to these accounts when a customer pays their invoice.

Go to Accounting and choose Customer Invoices, then click on the invoice to bring up the form. Click on Register Payment to bring up the Register Payment form:

For our example, we have chosen the Bank (USD) payment method. You have the option to provide a memo to document the invoice payment. By default, this will include the sales order number, but many businesses may wish to include a check number as well.

Click the Validate button to pay the invoice and create the appropriate accounting transactions.

The invoice is now paid and the journal entries have been automatically created, and we can now see the payment listed as a new journal entry.

Like you have done previously, use the Accounting menu and choose Journal Entries to bring up the list of journal entries:

Note that we now have an entry number of BNK1/2017/0002 that is also for $94.88, the same amount as the invoice. The Journal allows you to more easily organize transactions and identify exactly which accounts will be affected.

Let's examine the details of the payment that has been posted by clicking on the journal entry:

In this cash receipt, you will notice that we can see the details as to exactly which accounts will be affected when we post the entry:

• 101401 Bank is debited with $94.88. This will increase this asset account.
• 101200 Account Receivable is credited with $94.88. This will decrease this asset account.

Essentially, this journal entry transfers the potential asset the customer owes the company from Account Receivable into the bank account. The customer's account balance is reduced to reflect their payment.