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timberlineevents
December 26, 2024
Question

Sold business; not sure I am invoicing the sale correctly

  • December 26, 2024
  • 1 reply
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I sold part of my business in early 2023 and the buyer is paying me over time with monthly payments.I created an invoice to track the monthly interest charges and their payments. So each month, I change the date on the invoice and add the interest for the current month.

 

However, when I look at my 2024 P&L report, the amount under Sales for this transaction looks to include all the payments since the start of 2023.

 

I'm guessing I need to start a new invoice for each calendar year in order for just that year's revenue from the sale to be reported in my end of year P&L. Is my assumption correct?

 

Thanks in advance. Paul

1 reply

Rainflurry
Rainflurry
December 26, 2024

@timberlineevents 

 

"I'm guessing I need to start a new invoice for each calendar year in order for just that year's revenue from the sale to be reported in my end of year P&L. Is my assumption correct?"

 

Sort of, if I'm understanding your process.  It's best to issue a separate invoice for each payment received.  It's easiest to just copy the previous invoice (click 'Create a Copy' at the top of the invoice), change the date and adjust the interest/principal amounts.  Another option is to record a deposit instead of an invoice for each payment received.  

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