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K
kf6
April 18, 2020
Question

How do record an expense that is for the previous fiscal year that is recorded in the current fiscal year?

  • April 18, 2020
  • 4 replies
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4 replies

Rustler
Rustler
April 19, 2020

No, do not open the books as intuit @MaryLurleenM says, and do not back date the payment

 

just pay the expense with the actual date of this years payment.

 

if you filed as a cash basis tax payer, then the "expense" will count for this years P&L

If you filed as an accrual basis tax payer, then the "expense" will count for last years P&L

    K
    kmbarnes55
    March 29, 2021

    How can the expense count for last years P&L if it is dated this year? Wouldn't you need to make a AJE to move it into last year? That is what I am trying to figure out...

    A
    AbegailS_
    March 30, 2021

    Hello there, kmbarnes55.

     

    I'd want to make sure that you can record the expense. 

     

    You just need to edit the date to last year and consult with your accountant if you need to make AJE. 

     

    You can check this article on how to enter and manage expenses in QuickBooks Online.

     

    Don't hesitate to comment if you still have questions. Have a nice day!

     

     

     

     

     

    R
    Reddragon
    April 6, 2021

    There are some invoices which were to be paid in the previous year but were not paid . How to book in the same for the previous year ?

    L
    LollyNino_C
    April 6, 2021

    Glad to have you here in the Community, @Reddragon. 

     

    I’m here to help and share information about invoice status in QuickBooks Online. As per our all-star's suggestion @Rustler, record your invoice payment with the actual date of this years payment. 

     

    Before making changes to your books, I recommend consulting with your accountant. They would give the best advice on how to keep your books.

     

    You can check this article on how to enter and manage expenses in QuickBooks Online.

     

    Check this article to learn more: Close your books to lock past transactions.

     

    I have here some links that you can refer about receiving invoice payment in QBO:

     

    Please give us a call if you're getting the same result so we can create a ticket for you and investigate further. 

     

    I'll be on the lookout if you still have follow-up questions or concerns about your account. Just drop in the comment section below and I'll be happy to answer them for you. Take care and have a lovely day ahead.

    K
    KAVO
    March 8, 2023

    Hello,

    It depends upon your Tax Basis!!

    If you are on Cash Basis Accounting....You technically do NOT record the invoice... you ONLY record the payment. Hence you would record the payment with a date of 12/31/202X (the year you want the expense) and you can notate in the memo the invoice #, etcetera.

     

    If you are on Accrual Basis Accounting....Let's say the invoice is dated 01/19/2023, but you want the expense to be in 2022 (because the goods/services were in 2022)....

    FIRST: You record a GJE dated 12/31/2022 for the exact amount of the invoice, notate in the memo line exactly what it is for (services, goods, and the invoice date and #) ...

    DEBIT: "EXPENSE" account 

    CREDIT ACCRUED EXPENSES (liability acct)

    THEN... Record the Invoice with the date of the Invoice and all the details and for the ACCOUNT you will enter "ACCRUED EXPENSES" (which gets recorded as a Debit to that account lowering the balance)...

    THEN PAY THE INVOICE AS YOU NORMALLY DO (through "Pay Bills")

     

    If you receive an invoice that is SPLIT between fiscal years- for example an electric bill - some of it is for prior year and some is for current year.... follow the same instructions above...record the GJE for Accrued Expenses amount only for the amount that is to be in the previous year....then when recording the invoice, you put Accrued Expenses Account for the amount of the invoice that was for previous year(which matches the GJE) and notate the memo section and the next "Account" line will be the current year Expense Account Amount...then pay the invoice as you normally would through "Pay Bills"

    Hope this helps!!

    I've been doing bookkeeping since 1994

    ETK

      K
      KAVO
      March 8, 2023

      Hello,

      It depends upon your Tax Basis...

      If you are on Cash Basis Accounting....You technically do NOT record the invoice... you ONLY record the payment. Hence you would record the payment with a date of 12/31/202X (the year you want the expense) and you can notate in the memo the invoice #, etcetera.

       

      If you are on Accrual Basis Accounting....Let's say the invoice is dated 01/19/2023, but you want the expense to be in 2022 (because the goods/services were in 2022)....

      FIRST: You record a GJE dated 12/31/2022 for the exact amount of the invoice, notate in the memo line exactly what it is for (services, goods, and the invoice date and #) ...

      DEBIT: "EXPENSE" account 

      CREDIT ACCRUED EXPENSES (liability acct)

      THEN... Record the Invoice with the date of the Invoice and all the details and for the ACCOUNT you will enter "ACCRUED EXPENSES" (which gets recorded as a Debit to that account lowering the balance)...

      THEN PAY THE INVOICE AS YOU NORMALLY DO (through "Pay Bills")

       

      If you receive an invoice that is SPLIT between fiscal years- for example an electric bill - some of it is for prior year and some is for current year.... follow the same instructions above...record the GJE for Accrued Expenses amount only for the amount that is to be in the previous year....then when recording the invoice, you put Accrued Expenses Account for the amount of the invoice that was for previous year(which matches the GJE) and notate the memo section and the next "Account" line will be the current year Expense Account Amount...then pay the invoice as you normally would through "Pay Bills"

      Hope this helps!!

      I've been doing bookkeeping since 1994

      ETK

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