entry for van insurance which is paid by direct debit monthly (accural accounting)

Question asked by Katalin Kovacs 8 years ago

HI

Can you please advice me what is the best way to record insurance which is paid by monthly direct debit.

Do I need to create a bill for a full amount (as in accrual basis you meant to record when invoices are raised and not when money goes out) and then allocate the monthly payment to the bill or don't entry a bill for a full amount just the monthly dd payments?

However I never received a proper invoice, only received payment schedule (not sure if this is count as an invoice)

Thank you kind regards Kat

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3 Replies

Sorry for the delay Katalin, in that case, I wouldn't recommend the recurring bill template - instead create a bill for the full amount and then if you import statements you can link the payment on the statement to the bill (by selecting the supplier and clicking on the add transaction button beside the bill):

file

If you don't import a statement you can create a money out transaction on the Money>Bank accounts menu first and then explain this as per above:

file

Best answer
8 years ago

Hi Katalin,

Is the amount paid the same each period or does this change over time as you could create a recurring bill template with a recurring payment?

8 years ago

Hi John

Thank you for the reply.

First month is more, the other 11 months are equal payments. I can create a recurring bill however I received only one bill, is that ok?

Thank you

8 years ago

Sorry for the delay Katalin, in that case, I wouldn't recommend the recurring bill template - instead create a bill for the full amount and then if you import statements you can link the payment on the statement to the bill (by selecting the supplier and clicking on the add transaction button beside the bill):

file

If you don't import a statement you can create a money out transaction on the Money>Bank accounts menu first and then explain this as per above:

file

Best answer
8 years ago

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