My client invoices all his customers a 6 monthly in advance fee which his accountant wants spilt into each individual month in his accounts from the one invoice.
Any help on what would be the easiest way to do this, I now have a whole years worth to break down.
It probably depends on the software you're using, but if you can't come up with a clever way to make it do what you want, I'd use a spreadsheet.
- Columns for invoice date, invoice number, customer and net value, a column for each month of the current year, plus columns for the first 6 months of next year.
- Add totals for each column. I'd put them under the column headings, with a formula to add all the rows below to the end of the sheet, so you don't have to bother about inserting rows as you add invoices.
Then add each invoice and spread it over the 6 months from invoice date.
Each month post a journal:
Debit: "Sales" with the sales value for the month
Credit: "Prepaid Sales" in Current Assets
Debit: "Prepaid Sales" with the total for the appropriate column
Credit: "Sales" with this figure
At year end, copy the spreadsheet into the new year, delete the first 12 monthly columns and all the invoices cleared by the year end, add 12 columns to the right, then add column headings and totals to the new columns.
