Cash Advance
spurschic1@yahoo.com
Registered Posts: 94 Regular contributor ⭐
Hi all,
How would you account for this:
Client pays 20% cash in advance on invoice but final invoice not paid till after year end
Thanks in advance
How would you account for this:
Client pays 20% cash in advance on invoice but final invoice not paid till after year end
Thanks in advance
0
Comments
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Surely your creditor would just be invoice less paid to account? Balance left is paid post year end?
Depending on the date of the invoice I suppose...0 -
Sorry should have made it a bit clearer!
The invoice won't be raised or dated until after the year end0 -
spurschic1@yahoo.com wrote: »Sorry should have made it a bit clearer!
The invoice won't be raised or dated until after the year end
In effect your creditors will because of the credit on account.
Either raise an invoice for the 20% or make a year end adjustment for the amount.0 -
Hello,
Just post the payment as a 'Payment On Account' to the creditors account in the Purchase Ledger. This will show as a minus figure on your aged creditors at year end and these balances can be included in prepayments figure on the balance sheet.
If the invoice raised after the year-end relates to any work/goods received during the current year then create an accrual as appropriate.0
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