Quicken & Other Budget/Accounting Software/Financial Year
Our company last year financial year - Jan 12 Dec 12
Today, 15 March 13 i am going to make payment of $1000 to supplier A as below :
Invoice 1 - $500 (dated 1 Nov 12 and has been recorded into the system)
Invoice 2 - $500 (dated 1 Dec 11 and not yet recorded into the system-misplace)
For invoice 2, i am not able to record the invoice since it is dated before the financial year of 2012. And the software won't allow me too.
I can't change the "invoice 2" date to any of this year's date as it will reflect the expenses in 2013.
My question is, how do i assign my payment of $1000 to this 2 invoices as i only have 1 invoice record on the system?
If i need to do any journal, pls let me know the details.
2011 is now a closed period and as you have said, you will not be able to
enter it into the software.
Instead... use the earliest date that the period is not closed
So if you are allowed to use a 1/2/2012 date... enter the bill with that date
In the memo line... enter the memo "original bill dated Dec, 2011"
This is a common situation and it is understood that the expense will affect
the next accounting period.
If you are concerned that the bill will throw off a budget, you may think
about creating a new expense account called Prior period expenses and post the
bill to that expense. Discuss this with your external accountants or business owner
to see how they would like to see this expense posted.
Linda Saltz, CPA
Advanced Certified QuickBooks Advisor
We sell and support QuickBooks Enterprise