Credit Invoice

Options
Wendy_9933611
Wendy_9933611 Member Posts: 34 ✭
in Accounts Hosted

Hi community

I would like to raise a credit invoice. I have a customer who wants to pre pay a deposit on a future project. I need the account to show a credit and the customer requires a tax invoice - however if i raise an invoice that he pays the account won't be in credit. Any thoughts.

Comments

  • Kris_Williams
    Kris_Williams Member Posts: 3,303 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited February 2021
    Options

    You don’t create a credit note, or at least I wouldn’t- you can create an invoice or sales receipt, and if he wants one as you said the account won’t be in credit. Once the full invoice is done you can than show a minus on it of the amount already paid as a negative of the item used on the deposit invoice or sales receipt

  • Wendy_9933611
    Wendy_9933611 Member Posts: 34 ✭
    Options

    Thanks Kris. I think I'll take your advice on the 'show a minus amount' on the full invoice - I was just hoping to to work out a way of not having to 'remember' to do this - the account showing a credit would be an obvious safety net.

  • Kris_Williams
    Kris_Williams Member Posts: 3,303 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    Options

    You can simply do a receive payment without having an invoice entered, but firstly they want an invoice, and secondly if they didn’t you are obliged to enter one anyway as the income has to be accounted for in the quarter it was received in, as it’s a deposit for a job and not something likely to be refunded

  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    Options

    Just to add to what Kris has said, as this is a deposit for work which is only going to be performed in the future, there would not generally be any GST included in the invoice at this point in time.

    John L G

  • Kris_Williams
    Kris_Williams Member Posts: 3,303 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    Options

    Actually I thought there would be GST on the deposit as it’s been received for work to be done and is not a security deposit that’s likely to be refunded. And as such would have to be entered as a sales receipt or invoice

  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    Options

    Kris. After a lot of further research on what turns out to be a very complicated subject, I will now totally agree with you. This is not the way that I was taught many years ago!

    John L G

  • Kris_Williams
    Kris_Williams Member Posts: 3,303 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    Options

    Yes John I too have found things changed since my early days in the 60’s training in bookkeeping. GST certainly had an impact and there’s always something to learn

  • Wendy_9933611
    Wendy_9933611 Member Posts: 34 ✭
    Options

    Thanks John & Kris for the detail, unfortunately my goal was to have the account show a credit which I couldn't do and still raise an invoice to be paid but it's still nice to have the added details as i had not given the rest much thought. cheers, Wendy

  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    Options

    HI Wendy

    I have thought of another way in which you could do this and it might be workable in your case. It you forward date the invoice some time in the future, say some time after the deposit is going to be received, or even closer to the time of the project, you would be able to show the account as being in credit up to the date of the invoice. From my perspective though, I think that it would be desirable to have the date of both transactions occur within the same month due to potential GST issues.

    John L G

Categories