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Debtors setup
I am just in the process of setting up our account, and had a question about initial debtors:
I would like to bring in all unpaid invoices as of (pre) the setup date, so they can be reconciled. I presume that these amounts should NOT then be included in the Trade Debtors Opening Balance?
Is this correct, or should I just not create any invoices for this period and mark payments 'Receipt from Initial Debtor' ?
I would like to bring in all unpaid invoices as of (pre) the setup date, so they can be reconciled. I presume that these amounts should NOT then be included in the Trade Debtors Opening Balance?
Is this correct, or should I just not create any invoices for this period and mark payments 'Receipt from Initial Debtor' ?
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Inappropriate?Hi Toby
You're right, if you bring these in you shouldn't include them in the Trade Debtors Opening Balance. -
Inappropriate?Hi Toby,
I think it depends how "correct" you want the figures (speaking as an accountant). The best way is to bring the total in as Trade Debtors Opening Balance & deduct the receipts as and when they are received.
The alternative of marking them as "Receipt from Initial debtor", however, is quite acceptable. -
Inappropriate?Hi
When I'm explaining Money In for April and May in our Bank account which I know are from the previous years sales, what do I mark them as in the 'Type' drop down to make sure they tie up with the trade debtors value from last years closing balance?
Cheers
Nick1 Comment
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This answers the question
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Nick - yes, exactly. -
Inappropriate?Hi Ed
I can't see an option in the drop down. Are you agreeing with the idea or actually saying there is one?!
Cheers
Nick
I’m confused
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Inappropriate?I think its in the first drop down of 'other money in' as opposed to 'other sales income' but then you lose the VAT amount. Not sure if that will be reflected in your VAT due or not? Can't speak from experience. But if you're bringing in all outstanding invoices anyway, then shouldn't be an issue as you can just reconcile the payments as normal. -
Inappropriate?Nick/Jason
Yes - it's in Other Money In > Receipt from Initial Debtors.
The VAT status is assumed to be the same as set up on your Initial VAT Settings (Settings > UK VAT Registration) as far as Invoice/Cash-based accounting and Flat Rate Scheme etc is concerned.
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