diff --git a/beancount_format.py b/beancount_format.py
index 446ce26..a1bf874 100644
--- a/beancount_format.py
+++ b/beancount_format.py
@@ -889,7 +889,7 @@ def format_revenue_entry(
 
 def format_income_entry(
     user_id: str,
-    payment_account: str,
+    user_account: str,
     revenue_account: str,
     amount_sats: int,
     description: str,
@@ -906,7 +906,8 @@ def format_income_entry(
     fiat-first price notation (@@ SATS) for BQL queryability, unique link
     (^inc-{entry_id}) for tracking through the approve/reject flow.
 
-    Postings: DR payment_account (asset receives funds), CR revenue_account.
+    Postings: DR user_account (Assets:Receivable:User-{id} — user owes
+    the entity until they hand the cash over), CR revenue_account.
     """
     if not fiat_currency or not fiat_amount or fiat_amount <= 0:
         raise ValueError("fiat_currency and a positive fiat_amount are required for income entries")
@@ -921,7 +922,7 @@ def format_income_entry(
 
     postings = [
         {
-            "account": payment_account,
+            "account": user_account,
             "amount": f"{fiat_amount_abs:.2f} {fiat_currency} @@ {sats_abs} SATS",
         },
         {
diff --git a/models.py b/models.py
index 9fe3b9a..25323dd 100644
--- a/models.py
+++ b/models.py
@@ -128,12 +128,18 @@ class RevenueEntry(BaseModel):
 
 
 class IncomeEntry(BaseModel):
-    """Helper model for user-facing income/revenue submission (pending approval)"""
+    """Helper model for user-facing income/revenue submission (pending approval).
+
+    The user records that they personally received money on the entity's
+    behalf — so the postings are DR Assets:Receivable:User-{id} / CR
+    revenue_account. The user now owes the entity until they settle via
+    the existing /settle-receivable flow. Symmetric with ExpenseEntry,
+    which credits Liabilities:Payable:User-{id} (entity owes user).
+    """
 
     description: str
     amount: Decimal  # Fiat amount in the specified currency
     revenue_account: str  # Income/Revenue account name or ID
-    payment_method_account: str  # Asset account receiving the funds (Cash, Bank, Lightning)
     currency: str  # Required: fiat currency code (EUR, USD, etc.)
     reference: Optional[str] = None
     entry_date: Optional[datetime] = None
diff --git a/views_api.py b/views_api.py
index f77bea7..dc0dc69 100644
--- a/views_api.py
+++ b/views_api.py
@@ -1235,21 +1235,6 @@ async def api_create_income_entry(
             detail=f"Account '{revenue_account.name}' is not a revenue account (type: {revenue_account.account_type.value})",
         )
 
-    # Resolve payment method account by name or ID
-    payment_account = await get_account_by_name(data.payment_method_account)
-    if not payment_account:
-        payment_account = await get_account(data.payment_method_account)
-    if not payment_account:
-        raise HTTPException(
-            status_code=HTTPStatus.NOT_FOUND,
-            detail=f"Payment account '{data.payment_method_account}' not found",
-        )
-    if payment_account.account_type != AccountType.ASSET:
-        raise HTTPException(
-            status_code=HTTPStatus.BAD_REQUEST,
-            detail=f"Account '{payment_account.name}' is not an asset account (type: {payment_account.account_type.value})",
-        )
-
     # Permission check on the revenue account
     from .crud import get_user_permissions_with_inheritance
 
@@ -1262,6 +1247,12 @@ async def api_create_income_entry(
             detail=f"You do not have permission to submit income to account '{revenue_account.name}'. Please contact an administrator to request access.",
         )
 
+    # Income lands on the user as a receivable — they're holding cash on
+    # behalf of the entity until they hand it over via /settle-receivable.
+    user_account = await get_or_create_user_account(
+        wallet.wallet.user, AccountType.ASSET, "Accounts Receivable"
+    )
+
     # Convert fiat to sats
     fiat_currency = data.currency.upper()
     amount_sats = await fiat_amount_as_satoshis(float(data.amount), data.currency)
@@ -1288,7 +1279,7 @@ async def api_create_income_entry(
 
     entry = format_income_entry(
         user_id=wallet.wallet.user,
-        payment_account=payment_account.name,
+        user_account=user_account.name,
         revenue_account=revenue_account.name,
         amount_sats=amount_sats,
         description=data.description,
@@ -1323,9 +1314,9 @@ async def api_create_income_entry(
             EntryLine(
                 id=f"line-1-{entry_id}",
                 journal_entry_id=entry_id,
-                account_id=payment_account.id,
+                account_id=user_account.id,
                 amount=amount_sats,
-                description=f"Income received into {payment_account.name}",
+                description=f"User holds cash receivable to entity ({user_account.name})",
                 metadata=metadata,
             ),
             EntryLine(