I have entered the invoice and posted to 7601. The invoice date is Jan 2011 and is for the accounting fees for year09-10 but it was paid in February 2011 a month after the year end (31 Jan 2011). Do I have to acrrued the expence again because wasn 't paid in the same year or do I leave it like that?
Thank you very much for your help
Stef
-- Edited by Stef on Monday 23rd of January 2012 05:04:01 PM
I have an opening trial balance in sage istant account of an accrual (£1100 in credit side) for an accountacy fee for year 09-10. I have reversed the accrual with a journal
Dr Cr
2109 Accrual Account 1100
7601 Accountancy Accouunt 1100
We have been invoiced months later in the new financial year.
How do I post this invoice, which nominal code ( Accruals or Accountancy Fees)
If it was an accrual from the previous year, when it's reversed it should leave nil balnce in Accruals a/c, and the balance on the Accounts a/c as a credit balance, so that when you enter the invoice received it is contra'd out of the current year.
To me it looks like the opening balance for the accruals is wrong
The invoice should then be posted to 7601 Accountancy. Any difference between the accrued amount and the actual fee will then be taken care of in this years profit and loss account.
No, that's fine you should leave it as it is. The balance on the accountancy fees account should now be zero as you have accounted for this fee in the previous year. The whole point of accruals is that the expense be matched to the year in which it was accrued, which in your case was 09-10. You did this by making a debit entry in the accountancy fees for the end of 09-10 and crediting accruals and then reversing it at the beginning of 10-11.
