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Cash sales and credit sales

A cash sale is paid at once and leaves nothing owing. A credit sale is owed until the customer pays. The invoice screen chooses between them next to the due day.

  • Accounting Concepts
  • 3 min read
  • Updated October 20, 2026

For Sales clerk Cashier Accountant

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Two kinds of sale

  • A cash sale is paid when it is made. The customer owes nothing afterwards.
  • A credit sale is owed for a number of days, the due day, until the customer pays it.

On the sales invoice screen the choice sits next to the Due day field: a selector with Cash and Credit.

  • Choosing Cash sets the due day to 0.
  • Choosing Credit puts the customer's own credit days into the due day.
  • Typing a due day above 0 switches the selector to Credit.

A customer marked Cash selling customer on the customer screen always sells for cash: its credit settings are switched off. A ledger set to act as credit even though it is a cash or bank ledger (Cash/Bank ledger but act as credit on bill process) always sells on credit.

What a cash sale does

When you save a cash sale to a customer, the screen also saves a receipt for the whole invoice total, deposited to the company's Cash ledger (set in Configuration). So the invoice and its receipt are saved together and the customer's account ends at zero.

  1. Choose Cash and the customer
    Who
    Sales clerk
    Where
    Sales Invoice > Add
    What changes
    The due day becomes 0. For a walk-in sale, choose the cash or anonymous customer your company uses.
  2. Save
    Who
    Sales clerk
    What changes
    The invoice is saved and a receipt for the same amount is saved with it, in the company's cash ledger.
    Needs
    A numbering series for receipts, and a Cash ledger in Configuration. Without them the screen refuses the save and says which is missing.

Part payment on a credit sale

On a credit sale you can take a payment while making the invoice, using the Receipt details button (Pay bill): choose where it is Deposited to, the Receipt amount, the mode, and the cheque or card details. The receipt cannot be more than the invoice total. The receipt is saved with the invoice and is made against it. A customer who pays later is handled in Receive money from a customer.

Settings that change the default

Setting in ConfigurationEffect
Set sales option as by default cash sales optionNew invoices start as cash
Cash ledgerWhere cash receipts are deposited
Due day disabledHides the due day entry on the sales invoice

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