My client has an invoice for a subscription which I entered in full. He now wants it split so it will show in all his monthly P&Ls. I am using Quickbooks. Do I need to journal the split and if so how? Or is it just as easy/ok to do if I enter seperate monthly invoices with the same number/split figure?
I would post the whole amount to prepaid expenses then setup a memorised journal each month to feed it back from prepaid expenses to subscriptions. This way you don't need to remember to do it monthly.
I haven't used Quick books in a while, but I assume you can process monthly 'recurring journals'. so I would process the monthly journal between the prepayment and relevant nominal to ensure the amounts are entered accuratly. It would not be great accounting practice to input an invoice 12 times with an incorrect amount .. i.e the monthly amount and not the whole amount as one invoice. Therefore you would process the original invoice to the prepayments nominal account.
Well, I don't think it was me... there are lots of Alison Jones's around I think. Was she very intelligent? If she was... it might have been me after all :)
Does it make a difference though that the invoice is paid by a monthly standing order? So for instance Invoice dated May is for £1200, but paid by SO, over next 12 months, of £100. They aren't VAT registered either so its not like they need to claim entire VAT amount on invoice in that first month.
From an accounting point of view, no. However from a practical point of view to accept more than 4 payments for an invoice I eleive that you need a credit license. It might be easier sending a monthly invoice for the £100.
Its not payment to me from a client. This is an invoice my client pays to someone else by monthly standing order, and he wants it to show in his P&L report the monthly S/O amount rather than the whole lot showing in one month. I just wanted to know if it was easier to just enter the invoice as 12 sep invoices with the same number or whether I should enter the full invoice and then post to prepayments. As he's not VAT registered I'm not sure what difference it makes hence why I'm asking. Sorry if that wasn't clear in my original post.
I don't think you should be making up invoices; in general, I try and keep what's entered into books to be as close to what's actually happened as possible. I believe that _how_ a client wants something reported should be as distinct as possible from _what_ is being reported.
So if there was one annual subscription invoice, then enter it as one invoice and because your client wants reports monthly, this means that it gets balanced to prepayments (then ultimately to subscriptions) rather than direct to subscriptions.
However, what Kris says, "to accept more than 4 payments for an invoice I eleive that you need a credit license", seems to apply _to your client's supplier_ since you say he gets one invoice for the year and pays it in 12 instalments. But having a credit licence is presumably the supplier's problem, not your client's, yes? So that shouldn't affect what you do.
However, what Kris says, "to accept more than 4 payments for an invoice I eleive that you need a credit license", seems to apply _to your client's supplier_ since you say he gets one invoice for the year and pays it in 12 instalments. But having a credit licence is presumably the supplier's problem, not your client's, yes? So that shouldn't affect what you do.
This confused me about Kris' response which is why I felt I had to explain again. As you say Rob, this is of no concern to myself or my client and is down to the service provider.
So, if I post the invoice to prepayments and then do individual monthly journals from prepayments to Subscriptions this should work out right?
