Credit Note/Re-Invoicing after Year end

aclark

Hi forum

Earlier this year I did the year end for 2011.

However today, I was contacted by a customer with regards to an Invoice.

My secretary posted an Invoice to this company for £804 net + £305.20 vat in October.

What it should of read was £1526 net + £305.20 vat. Normally I would just post a credit note and re-issue a new invoice, but since I am in the next financial year, I am not exactly sure what to do.

As for starters, my sales totals for 2011 will be a little short (£1526-£804) and if I post a new Invoice in 2012, that will increase my sales this year for a sale in the previous year. At least the VAT is correct...

Any advice is appreciated.

clegganator

Well I would of said just post the credit note in this year because that's the date the error was realised and has been put right. I'm sure there is an IAS or something one of the accounting concepts (showing an area I need to study!) that points you in the same direction. Along the lines of if something immaterial has been missed out to include in the next period...

Monsoon

Have the 2011 accounts been finalised?

If not, then an accrual needs posting, which will correct the sales figure for last year, and mean you can credit/reissue this year with no drama.

If they have been finalised then you either need to amend them or, if the £700 odd isn't material, then I would just do the adjustments this year and increase sales this year, and make a note.

In summary, you have to put it in, and if you can't easily get it into last year, then you need to put it in this year.

As cleggy says, there's probably an IAS somewhere...