Quicken & Other Budget/Accounting Software/Last year invoice
There is one invoice 27/11/2013 that has been paid on 25/10/2014.
How should i treat this so that the invoice wont appear in this year's accounts - except payment.
Let me know the entries details.
When an invoice is generated
the accounting behind the scenes will
Increase accounts receivable
So the invoice should already be in the general ledger
and on the accounts receivable aging report.
Was it mistakenly omitted?
If it was omitted from the books last year,it would be
appropriate to enter it into the books for this year.
You do need to recognize it as additional income.
I suppose the most accurate method would be to change last
year's numbers and then file an amended tax return for that
income. You should take this up with your tax preparer.
If it is immaterial , he/she may tell you to just enter
it into the system with this years date.
Your question -how do you enter a transaction that
will not affect this years accounting.
The answer is as follows:
Create a journal entry:
Debit Accounts Receivable
Credit Retained earnings
Although I don't recommend this. It can cause hours of
"wheel spinning**" for your outside accountant.
Posting to a retained earnings accounts should only be
done if you plan on amending tax returns from prior years
and restating prior year financial statements previously published.
** Wheel spinning is an American phrase
In accounting, it is the act of trying to figure a problem
only to spend hours on the problem and at the end of several hours
you are no further along at solving the problem then when you first
Linda Saltz, CPA
Advanced Certified QuickBooks Advisor