What is the correct way to deal with advance payments in Sage. We run Sage 50 and the facility is there to raise a pro forma invoice for customers who want to pay in advance.
I can post the payment to their account no problem and it just sits there as a payment on account. The proforma is dated today 20th April 16, but the actual goods won't be delivered till 25th May 16. At which date should I post the real Sales invoice to the Customer. Can this be flexible or should it be fixed at the day we received the payment and not the day the customer receives his goods.
Hi Marina
Can't see my phone very easily as its too sunny, so instead of answering in full can I just say this is not a sage query per we but an accounting one, including VaT. If you have a ponder on how it should be reflected for deposits or payments in advance versus the vAT tax point and if it's refundable if you don't deliver and let me know your thoughts the. I can e plain how you manage it in sage. Be good to know what kind of thing an advance payment is for and if you buy in goods or start the manufacturing process once they have paid etc
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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
