If they were posted into Quickbooks and shown in creditors for the 2012 accounts, you simply pay them off in the current year using the payment date
If you mean they were not posted into Quickbooks and that the acconts have been done, you will have to post them into Quickbooks dating them the first day of the new financial year. That way they will be picked up in the current year. Thats all you can do it the accounts have been finalised
-- Edited by FoxAccountancyServices on Thursday 7th of November 2013 04:22:41 PM
You need to think about what you are attempting to achieve rather than thinking about the software which is only there (supposedly) to make your life easier.
Always consider everthing from the final accounts perspective and where you expect to see each element that you entered then work backwards to the data that needs to be in place.
Amounts unpaid at the period end (I assume that you mean owing to you) are debtors.
Are they showing as that on the balance sheet?
As they are paid that reduces the debtor figure but the revenue remains recognised in the period that it was earned.
You don't just write off invoices that were unpaid at the period end.
The only time that you would do something like that is where the debt becomes bad such as a client going into receivership.
Hope that makes sense,
kind regards,
Shaun.
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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.
If there are outstanding sales invoices, which you know will never be paid, you create a customer credit note. If you are not VAT registered, you will simply post the gross figure to "bad debts". If you are VAT registered, you should prepare the credit note so that the net and VAT elements are the same as the original invoice. The net value will go to "bad debts".
Alternatively, if you are talking about invoices from suppliers, you will create a supplier credit note. If you are not VAT registered, you will simply post the gross figure to the same code that it was originally posted to. If you are VAT registered, you should prepare the credit note so that the net and VAT elements are the same as the original invoice. The net value will go to the same code it was originally posted to.
If you have used an accountant to prepare your accounts from Quickbooks, you should check whether there are any Year End Journals to go into Quickbooks, and indeed, whether any of these journals will fix the issue you have questioned above. The accountant can help you with tidying that up. Its better to pay them a few quid to help now, than create a mess that will cost more at the year end to fix.
Why would an invoice still open at the period end warrant a credit note or become a bad debt?
If there is no reason to believe that the debt is bad such as the client going into administration or there was an issue with the invoice warranting a credit note then surely you just leave it open as a debtor and pull your finger out over credit control processes?
For the question asked of course your answer is correct but my impression is that its the question that is wrong.
Just read again exactly what the poster has asked, not the how to do it which you have answered but the actual underlying question.
kind regards,
Shaun
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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.
Due to the lack of information from the OP, my first post sought to say that if they were to be paid, then they sit on QB until they can be cleared using the payment date in the current year. The OP coming back and saying weren't paid, suggests to me that they still haven't been paid - otherwise the OP would have said ok, and left it at that, surely? So, in my last post, to cover the situation, I used the words "which you know will never be paid"
If the OP believes these invoices will never be paid, why shouldn't they write them off? I've already explained that if they are to be paid, they just sit there until they get paid. Its not for me to tell them to chase them, or to judge whether the OP is wrong to get rid of them. They don't have to wait for liquidation to write off, and the 6 months VAT stipulation has passed if the year end was January 31.
I personally feel that when you combine my answers with yours, the OP should be getting a clue about what they should be doing... because, my darling internet hubby, we make a great team ;oP
lol, internet hubby... Just like a real one except you can switch me off at night.
Good answer by the way.
I was only using gone into admin as an example. like yourself I've written off debts, especially very immaterial ones as just not worth chasing anymore even though the debtor was still quite healthy.
I think that you could read my general concern over the question though which was more than a little caused by reading over on Aweb about a case where credit notes were raised for outstanding invoices at the VAT quarter end and a new invoice raised the next quarter so the VAT bill was lower! lol.
talk later sweetie, x.
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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.
Ooo a kiss.... I'm blushing.... maybe I'll turn you on tonight instead .....................
Oh dear, did I just say that... I'll brace myself for the comments.....
BRING IT ON!!!! FRIDAY FUNNNNNN!!!!!!
For once you have me stumped for words Michelle...
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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.
