Receiving a payment that has not been invoiced

LAC
LAC Member Posts: 18
edited July 2020 in Accounts Hosted
Receiving a payment that has not been invoiced. Do I record under record deposits or create sales receipt? Can you please explain the difference and will either way be recorded correctly for income with BAS? Sorry - new to this!

Comments

  • Kris_Williams
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2020
    Record deposits is for something that isn’t BAS related, as there is no way to tax code a deposit. E.g. a loan or refund of bank charges, things that don’t have to be shown on the BAS.
    If the deposit is for taxable income with GST you will have to do a Sales Receipt, probably using the same item you would use on an invoice
  • Bruce
    Bruce Member Posts: 439 Professional Partner Professional Partner
    edited July 2020
    My comments are predicated on the basis that the person is paying you for a service/product that you might have, under other circumstances, invoiced for.

    In which case you should use "Create Sales Receipts".  This will treat the transaction in the same way as if had issued an invoice in that it will record GST.  The figures will translate through to your BAS reports and the process will also give you the opportunity to send a combined receipt/tax invoice to your customer.  

  • LAC
    LAC Member Posts: 18
    edited July 2020
    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
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2020
    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
    LAC Member Posts: 18
    edited July 2020
    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
    LAC Member Posts: 18
    edited July 2020
    Thank you. 
    Payables - can I use write cheque or do I need to enter the bill then use pay bill - can you please explain difference

    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 ?
  • Kris_Williams
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2020
    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
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2020
    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
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2020
    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
    LAC Member Posts: 18
    edited July 2020
    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
    LAC Member Posts: 18
    edited July 2020
    Looks like they were allocated to an income account with GST recorded

  • Kris_Williams
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2020
    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
    LAC Member Posts: 18
    edited July 2020
    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
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2020
    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
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2020
    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
    LAC Member Posts: 18
    edited July 2020
    If you don't mind, can I please give you a call tomorrow?

  • LAC
    LAC Member Posts: 18
    edited July 2020
    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
    Kris_Williams Member Posts: 3,272 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited July 2020
    Doesn’t make sense, yes please call me after 9