1 (edited by baxterdmutt 07/07/2023 06:37:48 pm)

Topic: Prepayment on next years invoice

I’m wondering if anyone can suggest how to accept a payment in this fiscal year, for an invoice that would be an accounts receivable in the next fiscal year. So that the accrual reporting works out in the proper fiscal years. Some of our members are prepaying their fee and I’m confused as to how to do that. I know this is an accounting question but also one related to how the software reports.

What I have done is created an invoice for the first day of the next fiscal year. I also added a new GL account “membership23-24”. I then accept payment on the date it occurred (So that the bank balances work out for the month).

Have I done this the best way?

Re: Prepayment on next years invoice

You might want to take a look at Prepaid Orders. Try to experiment with it and you might find what you need.

Re: Prepayment on next years invoice

Ok I think I did this correct and I can see that the payment is in the deferred account. Would I then just do a Journal entry (set to the next fiscal year) and move the amount into its proper income COA