Ive invoiced for services provided in May, invoice date is 1 June. How I deal with? (and in Sage?)
Also I have a mobile phone bill invoice dated 1 June, representing May billing - so would I be right in assuming I enter this phone bill amount as an accrual?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I really should have more confidence in myself as that was what I thought when typing it out. All the same its nice to get some clarification and good to speak to you again Chris!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I usually set up a Accrued Income code as a sub code to prepayments. I also rename an unused sales code to "accrued income" and then to a T9 journal for the net figure.
Telephone bill is just a bog standard accrual :) Be sure that the charges aren't actually for June though.. you usually pay contract charges in advance and calls in arrears. If this is case, only accrue for net call charges that relate to May.
Thank you Michelle
This accrual and prepayments business is blowing my mind - partly because I have 3 year ends on the go and trying not to forget anything and get them all the right way round. My list has spawned lists!
Good call on the contract charges though, so thank you - I spotted it after emailing this query - at £50 it got lost in the overall bill of £2062!!!
I think with all these books and guides about bookkeeping someone could just write one about all the strange and weird things we see in real life - would be a long book, boring to read in the garden but really useful! Except we wouldnt have such forums then and that would be boring!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Aw you will get there!!! I always start thinking about what I am trying to do with the P&L.. I work out what side my P&L adjustment has to be be on.... and then, the adjustment can only be on the other side for the balance sheet.. :) Accruals has "CC" (double C) for CCreditors!
OK, I dont do this anymore, but I used to! ;0)
Its probably best to just reverse the full opening accrual/prepayment, and post the closing - as opposed to trying to do the adjustment.
