Please help,
Nicolaw1702
Registered Posts: 64 Regular contributor ⭐
We have a customer who has just placed an order worth £30k, as this is a large order we have asked for a 30% payment upfront against this order, so we will receive £9k cash. Can we invoice the £9k to improve our sales in February?
My answer was NO, we cannot invoice any of the goods as they are not ready for dispatch. We can only issue an invoice when the goods are ready?
My answer was NO, we cannot invoice any of the goods as they are not ready for dispatch. We can only issue an invoice when the goods are ready?
0
Comments
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Hello,
Where I work a 'Proforma Invoice' is raised for the customer to make their deposit payment against. On receipt of cash the journal would be to Dr Cash Cr Debtors - as the items are supplied the actual sales invoices are raised and the Sale would then be recorded in the books.
If no actual supplies are made during Feb. then I believe no sales should be recognised as cash only has changed hands.0 -
If no actual supplies are made during Feb. then I believe no sales should be recognised as cash only has changed hands.
IAS 18 I believe, until significant risks and rewards have being transferred, and there is no continuing managerial involvement revenue must not be recognised for sale of goods
Regards
Paul0 -
This is what i HAVE said but my boss is adamant he can invoice the 30%, he said it isnt a proforma but rather stage payments and this should be invoice?
I really do not agree with him as the goods are not even ready to be shipped.
I believe the 30% upfront is just to 'cover your back' incase the customer fails to pay?0
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