Quicken & Other Budget/Accounting Software/Invoice
QUESTION: Accounting period for Dec 12 (1 - 31 December). Closing 31 December.
Supplier sometimes send their invoice later than the closing date (Dec invoice), so how do i record this invoice after the accounts has been closed? And how to record the payment too? The invoice dated 5 Dec 2012.
ANSWER: Once the "books are closed" you should not be posting to the prior period.
Before you close the books you should be accruing the expenses for the period
for which you have not received a bill.
So in the future, I recommend calling the vendors and having them e-mail any missing
bills before you close the books. Or create an estimated Journal entry
Debit Expenses (or inventory) dated xx/31/last month
Credit Accrued expenses ( other current liability)
Then reverse this journal entry next month 1/1/next month
Credit Expenses (or inventory)
Debit Accrued expenses ( other current liability)
That way, when you book the bill this month, the expense you are posting to will
have charge dated Jan 2013, and a credit to that expense from the Journal entry
making the "to date" value in that expense close to zero. In effect the journal
entry created at the end of last month booked all the expenses.
If the books were closed 12/31 and no accrued expenses were entered to account for this
bill, date the vendor bill in January and post the expense to this year.
Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
We sell and support QuickBooks Enterprise
---------- FOLLOW-UP ----------
QUESTION: After recording and reversing the journal, when i book the bill this month, should i amend the invoice date? as the invoice dated 5 Dec 2012.
It depends on how your software uses the vendor bill date.
QuickBooks will post the transaction to the month in which the bill is dated.
So if you put 12/5 it would post to December. Other software programs
if you have closed the month, will accept the date 12/5 on the vendor bill
but use todays date in January.
If you are not sure how your software treats the bill, I suggest you use a date in January