Forum Message

Invoice in This year, pre-payment in Last year

A client pre-paid 50%of an agreed project at the end of last financial year - those were the terms of the project to enable us to purchase the required materials. However, no work was done on the project and no invoice was produced for the customer, but the cheque was banked.

When I set up Solar accounts, I included the pre-payment in the brought forward balance for the bank account as that was the true reflection. Now that we have completed the project, I have (manually) prepared an invoice, but now I want to associate the pre-payment with that invoice. Please advise how do I do that ?


Posted by Alan Rick on Oct 13, 2009 10:04 PM BST

Hi Alan,

Create a new liability account called 'Customer Prepayment' with the opening balance the amount of the prepayment. Then when recording an invoice payment, set the Deposit Into Account field to this prepayment account. You will need to create a separate invoice payment for the remaining 50% in the normal way.

I hope this makes sense - let me know if you need more information.

Cheers,


Posted by Mark McLaren (Solar Accounts) on Oct 14, 2009 10:00 AM BST

Thanks Mark. That makes perfect sense.


Posted by Alan Rick on Oct 14, 2009 10:59 PM BST