I have been asked to bring the companies book keeping inhouse and am setting up in sage. We have clients that make payments for future events in installments, many months before the date of the event. I want to hold these in a control account, but am not sure of the best way to do it within Sage. As part of this we have credit opening balances that need to be logged against each client. Any advise on the best way to proceed?
Its a prepayment for which you need to end up with a debit to the bank showing the incoming payment and a credit to the prepayment liability (basically the client has loaned you the money until your business fulfils it's obligations).
When you reach the critical event (namely when the business fulfils it's obligations) then it moves from being a liability to revenue.
Don't use Sage so someone else will tell you the Nominal codes to use.
What software was being used before bringing the work back inhouse? If Sage can you not just look at one of the other prepayments?
Appologies if the answer is aimed at the wrong level. Don't know anything of your background / knowledge base. Are you someone with a background in accounts or just the poor bod who didn't take a step back when management thought that bringing things back in house would be a good idea.
kind regards,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
