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lkoups
Oct 18, 2021 10:30 AM UTC
Solved

Payment received in advance

Hello, we have received an income payment back in June that is being accounted for in October. Please could I have advice on how to record the payment in June so that I can then account for it now? I am not sure what account to post the payment in advance to so I can use it now via a journal to put in the correct cost account. Thank you

GeorgiaCAnswer
Oct 18, 2021 2:48 PM UTC

Thanks for getting back to me lkoups, Accounts Receivable would be the correct account to use for payments on a customer account, so this sounds correct. 🙂

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3 replies

GeorgiaC
Oct 18, 2021 1:17 PM UTC

Hi lkoups, can we first check if the payment has VAT applied, and if you're using the Standard or Cash VAT accounting scheme? You can see this by going to Taxes > Edit VAT > Edit settings. 🙂

lkoupsAuthor
Oct 18, 2021 1:25 PM UTC

No VAT charged. I have had a go and added all the payments to accounts receivable and then done a journal out for October into the correct cost centres- hopefully this is correct.

GeorgiaCAnswer
Oct 18, 2021 2:48 PM UTC

Thanks for getting back to me lkoups, Accounts Receivable would be the correct account to use for payments on a customer account, so this sounds correct. 🙂

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