Proforma Supplier Amount

Hi Matt,

In this case, the best solution would be to create a Purchase Order, you can then choose to generate a bill from this once you do get billed in real life. However, a purchase order would not affect the Profit and Loss account.

Thanks,

Tommy

Hi Matt

As long as you have "Accrual dates" toggled on (in Settings>Configure system>Toggle features>Accounting), you can put an accrual date in the supplier's bill that would actually show in in say October's P&L

Alternatively, the traditional way to account for this in advance is via an "accruals" journal entry.

To do this you need an "Accrued expenses" or similar account code set up in "Other creditors" as well as enabling a Toggle feature called "Reverse on date journals" (also In Settings>Configure system>Toggle features>Accounting).

You create a journal entry (in Tools menu) with a debit to the purchase account code of £32K and a credit to the new accrued expenses code of £32K. You date it say 31 October to bring it into the October P&L and set a reverse date of say 1 November (ie the month you expect to receive the supplier's bill) .

In this way the November P&L will show a negative cost of £32K but a positive cost for the bill, which takes care of any difference.

If you wanted to actually grow the accrued expense over each month (June to October) you could set up a recurring journal entry (also in tools menu) for £6,400 to happen 30 June to 30 October.

Don't use the reversal date on it though as I don't think it works in recurring journals*, so leave the reverse date blank and then enter another journal 1 November debiting accruals £32K and crediting the cost code £32K.

*Tommy can someone check this and if relevant report as another defect?

Hi Paul,

Ah! Thank you for shedding some accounting knowledge Paul!

You are indeed correct, a better alternative would be as you said, to enable Accrual Dates where you are able to raise the bill with a separate bill date and ensure it shows up in the preferred period on the P&L. Likewise, if you are more familiar with accounting, you can use the journal method as Paul stated.

Sorry, which report are you referring to?

Please let me know, thanks!

Tommy

Thanks Tommy

My point is that when you create a recurring Journal you are offered the reverse date field but it doesn't work. So if I post 5 recurring Journals from June to October and tell it to reverse each 1 November, the reversals don't happen.

Hi Paul,

Ah right, thanks for pointing this out! I have tested this out and the reversals aren't processing. I will have to escalate this to our technical team and will update you as soon as this has been resolved.

Regards,

Tommy

Hi Paul,

After review, our developers have decided to remove the reverse date feature for recurring journals. They have taken note of this feature and will be considering to reintroduce this in the future as a fully functional feature. In the meantime, the best workaround would be to create another recurring journal template for the reversals.

Apologies for the inconvenience!

Thanks,

Tommy