Invoices date

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AnaGray
AnaGray Registered Posts: 2
in Bookkeeping
Hi everyone, I am faced with a dilemma. We are an advertising company, running a budget from Nov-Oct. from June-Aug we sent our new bookings/ orders out. Some of the publishers will invoice us as soon as the order is received on 30 days payment terms. How shall I deal with these invoices as the budget allowance starts from Nov and the bookings/ service will start from Nov. Shall I ask for the invoices to be dated 30 days prior Nov? Or I can process the invoices but pay them in Nov? Does the issue date matters? Thank you, Ana

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  • Breakdance101
    Breakdance101 Registered Posts: 4
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    It depends on when you actually receive the product or service - Personally If they're invoicing you in September say and (from your notes above) they're not providing the service till November - I would always add the bill on the ledger at the billing date and pay as per the suppliers payment terms. I would then at month end do a prepayment journal. Releasing the prepayment to the ledger once the service has been provided. (i.e.) November - This should then fall inline with budget expectations and make your P&L accurate.

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