Sorry, I think I did not explain the issue clear enough and clearly was not detailed enough
First, forget about the invoice overdue on november.
Let's change the scenario for a bit :
A salesman who works for us had score an extraordinary sales target last year (2018), hence the top-level has decided to give him the yearly bonus (say $1,000). But the bonus would not be given to him until 1st of March the following year (2019) via bank transfer. How would you enter this transaction into FA ?
Essentially, how do I make FA recognize this as expense in 2018, but the bank transaction that actually happens is recognized in 2019 ?
What I currently do (and hence think the correct way - but apparently not so )
(1) Make a Journal Entry with journal date 31/12/2018 and Event Date/Document Date 01/03/2019
Wages $ 1,000 (C)
Bank $ 1,000 (D)
(2) This way, the extra $ 1,000 is recognized as expense in December 2018
(3) Then, when I check on Bank Statement, I found that the transaction is journal-ed on 31/12/2018 whereas I thought it would be on 01/03/2019 Hence If I print monthly Bank Statement for March 2019, the transaction won't be there
So what I want to get out of this is :
(a) The extra bonus $ 1,000 is recognized as Expense in December 2018 when you print out P & L Statement of 2018
(b) When you print out March 2019 Bank Statement, there is that actual transaction for that
Please help me correct this
I'm more of a system developer background, not so much for accounting but I'm learning