sage line 50 accruals etc

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Christine
Christine Registered Posts: 1 New contributor 🐸
in General accounting discussion
Can anyone give me some advise on Sage and Accruals/prepayments? I have received an invoice dated in July (our year end is 31st July). The period coverd for the invoice is 1/4/08 to 31/3/09. Payments will not start to be taken from the bank until 1/8/08 (into our next financial year). Any help would be appreciated!

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  • Nilesh Mandvia
    Nilesh Mandvia Registered Posts: 91 Regular contributor ⭐
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    Monthly payment?

    It is not clear from your question. What is the invoice for? Also you said payments would not start until 01/08/08.

    You need to read the invoice and related paper work carefully. If you are paying by monthly, the tax point date may be the payment date. (This applied if you are vat registered).

    Other wise, here you calculate prepayment

    As invoice is for 12 months, invoice amount (net amount) divide by 12 you get monthly charge. Then multiply by number of months falling in next accounting year. (from Aug-08 to Mar-09) 8 months.

    Journal

    Debit Prepayment Account (BS)

    Please do not take this as offence, if you do not know how to calculate prepayment, why are you working on year end? Do you have FC? An external accountant, who could help you?

    Kind Regards

    Nilesh

    Credit Expense account (P&L)

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