I have just discovered that my customer made two payments last year (before I started at my job) and now wants one of the payments to be put against his December 2020 invoice. Prior to me starting everything was kept in a paper ledger, so i can definitely see two receipts. problem is, I don't know how to show the payment without it causing my bank rec to be out, as these payments were made in 2019.
Many thanks for any help.
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Hi John. Quickbooks was only set up in June 2020, so we started using bank balances from that date. Prior to that everything was accounted for in a paper ledger and the accountant would take that information and use it without my predecessor getting involved (hence the mess Im now in). The two payments came in 2019 but from what I can see we never sent invoices to any of our commercial tenants. Its only now I have started sending them invoices and statements from Quickbooks that I have discovered this!
Hi farmgirlkent69 We presume that you have set the tenants up as customers, if this is the case you could create the payments received as deposits and allocate them to the debtors account. You will then be able to create the invoice and select receive payment and use the deposit to pay the invoice. The only difficulty with this option is the fact that you're not able to account for VAT on the deposit when allocating it to the debtors account. Are you wanting to account for VAT on the date of the deposit in 2019, has it already been accounted for or are you accounting for the VAT at the point you create the invoice?
The VAT element was accounted for last year. It seems having been looking through the records that this particular customer always made an extra payment each year, which would then be carried forward for the following year. All fine whilst the accounts were being done manually in a paper ledger, but of course I didn't know this when I took over. The customer has now asked that the payment in 2019 is used for his October bill which I have been chasing..! I was worried this would then cause a problem with my bank rec at the end of the month.