Can I record a payment on account to a supplier without allocating the amount to specific invoice?
Same question for the sales ledger
Hello Martin,
Unfortunately there's not a simple solution for payments in advance in Solar Accounts. You have two options:
Option 1:
Create a new liability account called 'Customer prepayment', then record a General Transaction from this account. Later, you allocate the credit as an Invoice Payment deposited into this account.
Option 2:
Create an invoice for the amount of the payment, and a corresponding credit note which 'cancels out' the invoice. Allocate the payment to the invoice. Later, allocate the credit note to another invoice.
A related issue is that if you are VAT registered you should pay VAT to HMRC based on when you received the money, not when you later issue an invoice. If you don't use the cash method and the payment date is in a different VAT period to the invoice date, you will need to manually 'bring forward' the VAT amount so it appears on the earlier VAT return.
I hope this makes sense - let me know if you need more information.
Regards,
