Posting invoice for period

Question asked by Kristina Venclauskaite 8 years ago

Can you please advice how to post correctly a suppliers invoice stating 'Payment period:29 March 2017 to April 2017'?

I posted the invoice amount in two lines where the first indicates the relevant nominal account with a half of invoice amount and in the second line posted the remaining half amount of the invoice in the prepayments account.

What will happen with the prepayment account for the invoice next month? Do I have to action anything?

thank you so much

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3 Replies

Hi Kristina

Your original question indicated that you wanted to post one line of the bill to the expense account (for half the cost in March) and the other line posting April's half to prepayments.

If the period of the bill is 29 March to 29 April then yes, the whole bill should go to the prepayments account and the payment of the bill is irrelevant.

As I said, Journal entries are in the Tools menu.

Best answer
8 years ago

Hi Kristina - yes, there's no automatic action with prepayments account so you have to do a Journal next month (Tools menu) where you debit the relevant expense account and credit the prepayments account, to clear it.

8 years ago

I probably was not clear enough in my case and I still have doubts with correct posting The monthly Invoice was received 27 February for the period 29 March to 29 April. I think that all amount have to be posted as the prepayment in March. I would assume that payment allocations would be resolved when payment will be allocated. How to make journal entries to reverse the prepayment?

thank you

8 years ago

Hi Kristina

Your original question indicated that you wanted to post one line of the bill to the expense account (for half the cost in March) and the other line posting April's half to prepayments.

If the period of the bill is 29 March to 29 April then yes, the whole bill should go to the prepayments account and the payment of the bill is irrelevant.

As I said, Journal entries are in the Tools menu.

Best answer
8 years ago

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