Receiving a payment that has not been invoiced

LAC

Kris_Williams

Bruce

LAC

If some have been entered by mistake in record deposit, is there an easy way to fix this and change to create sales receipt?

Kris_Williams

Well if there were too many to change one at a time you could do a journal for the total, I’m happy to help you with that. Otherwise you would create the Sales Receipts, which go directly to the chosen bank account, then go to the bank register or any way you are comfortable finding them and delete them. You will then have to go back to your reconciliation and mark them as cleared. 

LAC

Thank you, that makes sense.
Now for payables - can I use write cheque for some payments or need to enter bill then receipt? Sorry for silly question, just wanting to get right

LAC

Kris_Williams

You can definitely just write a cheque if you don’t need to enter the bill for any reason. You might want to keep track of what was owing at a certain date e.g., in which case entering bills will give you precise information, but most of the time entering a cheque is enough. If you have a lot of bills for multiple suppliers it’s best to enter them to make reconciling with the statement easier. Depends on the amount of paperwork and what you want to achieve in the end. Just remember that at the end of the financial year it’s best to enter any outstanding expenses as bills to get them into the correct financial year if you need to. That won’t affect your BAS if you are on cash basis, but they will be included in your annual accounts. Many ways to include them, entering the bill is probably easier, then they can be paid off as that happens.
I’m happy for you to call me if I can help with anything.     0415940843

Kris_Williams

Another thing about entering bills is that if you pay them straight away there’s no point entering the bill first just to do a pay bills a few days later, or especially  on the same day.

Kris_Williams

Payments received as deposits and not marked off invoices will affect the BAS as the GST won’t have been included, and the difference will flow onto the P & L. When the payments were entered as make deposits what account were they put against? Because if they used Accounts Receivable that’s another matter altogether 

LAC

Thank you I've only taken over from previous accounts person and they entered payments received into record deposit and payments made via write cheque. How will this have affected BAS and also P & L ?

 It looks like I will have to go and delete all recorded deposits  and change to create sales receipt? Obviously previous BAS quarters will have incorrect income?

LAC

Looks like they were allocated to an income account with GST recorded

Kris_Williams

Ok not possible in the make deposits window alone, maybe the receive payment was done and then picked up as a make deposit. But sounds good

LAC

I have looked back at previous P & L report for earlier in year and the deposits recorded are displayed in P & L under income 

Kris_Williams

I would not rush into anything as there are a few things that could be happening. Also happy to take a look at your file for you before you change anything - may not be necessary based on your previous comment about recorded as income with GST

Kris_Williams

Yes they will show on P & L if they were allocated to an income account, main concern is whether they were marked off against an invoice and then deposited. It can be a 2 step operation, doesn’t have to be but sometimes that’s what people do

LAC

If you don't mind, can I please give you a call tomorrow?

LAC

From briefly looking - looks like entry was made via make deposit and in section where it selects from what account they have allocated one of the income accounts which has GST set up in chart of accounts

Kris_Williams

Doesn’t make sense, yes please call me after 9