Income accounts: what you sellحسابات الإيرادات: ما الذي تبيعه

Everything you sell is recorded in class 7, Income. Which account inside class 7 you use comes down to two questions, and only two: is it a good or a service, and is it subject to VAT.

1. Class 7 at a glance

Two of these carry your day-to-day sales: 70 and 71. The rest exist for cases most businesses never touch.

2. Goods you resell: 70 → 701 Invoices

Under 70 Sales of Goods sits 701 Invoices - the accounts your sales invoices actually post to:

Beside 701 sits 709 Discounts & Allow…, which repeats the same split for the discounts you give (7091, 7092 with 70921 / 70922, 7093, 7094) - so a discount lands in the same VAT world as the sale it reduces.

The pair to know by heart is 7011 and 7012: items with VAT, items without.

7011 also turns up outside the chart of accounts: it is the Sales account an item carries, sitting opposite 60111 - Purchases of Goods /Vat Deductible on the purchase side. An item family fills both in for you - see Item families.

3. Services you sell: 71 → 713 Services

Services are not under 70. They sit under 71 Sales of Products, in 713 Services, and they are built in exactly the same shape as goods:

Once you have seen 7011 / 7012, you already know 7131 / 7132.

Some descriptions are wider than the Latin description column and are shown cut off, ending in …. Widen the column, or open the account, to read the whole thing.

4. A service is not a product

This is the distinction the training spends the most time on, and it is worth a worked example.

A customer buys a part from you. Then they ask whether someone can remove the old one and fit the new one, and they will pay for that. Two different things have been sold:

• the part is a good you resold → 7011
• the removing and fitting is a service → 713

One invoice, two income accounts. Put the labour on the goods account and your reports will say you sold more parts than you did, while the money you earn from work simply never appears as service income.

The test to apply is not "was it on the same invoice" but "did I hand over a thing, or did I do work?"

5. Subject or not subject is a flag on the account

Notice the VAT column in all three screenshots. It is ticked on 70, 701, 7011, 7013, 709, and on 713 and 7131; it is clear on 7012, 7014, 70121, 70122, 7132, 71321, 71322 and 7133.

That is the same VAT checkbox that separates 40111 Suppliers from 40112 Suppliers Non VAT and 41111 Ordinary Clients from 41112 Clients Non VAT (Suppliers, Clients). One flag, used the same way in every class: does what is posted here carry VAT?

So you do not decide subject-versus-not-subject on each invoice. You decide it once, by choosing the right account.

6. When one services account is not enough

A business that sells several different services quickly wants to know which service earned what - nail polish against massage against lashes. Splitting 713 into an account per service is one answer, and for two or three services it is a fine one.

Beyond that it stops scaling, and the better tool is cost centers: the same 713, with a cost center per service, which also lets you separate a subcontractor's work from your own staff's on the very same service. See Services & cost centers.

Next: The chart of accounts · Services & cost centers · Key rules.