Proforma payment

kazflan

I have posted a payment to a supplier account but have not received the invoice as yet. as it is month end I cannot remember if I have to post a dummy invoice to the account or accrue the invoice. I see the person prior to me raised a dummy invoice and then credited it out?? So long since I have dealt with this type of transaction. Any advice on how to account for correctly at month end. Thanks

crispy

Has the comapny received the goods/service for which paid for in advance and is just awaiting the final invoice? If so, I would create an accrual for the expense and just leave the supplier balance as a credit and include under prepayments. If an invoice is due I would chase the supplier for a copy as well.

If you have not received the product/service then leave as credit balance under prepayments/other debtors and create no accrual.