Recording expenses in quickbooks

Recording expenses in quickbooks

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Hello!

I have a question about recording expenses in QuickBooks. Our company purchased public liability insurance in February. We received invoice for the total amount of 10000 that has to be paid within 10 month by installments – 1000 per month. Company’s financial year ended on 31 of March. Before the end of financial year we paid for February and March, total 2000. Thus 8000 is still outstanding. I am not sure how to post this invoice in quickbooks, because if I enter a bill for total amount of 10000, the full invoice amount will be added to expenses for the last financial year. And this cannot be correct as I think that we should claim public liability expense for the months that fall in financial year.

Thank you in advance for your answers.

 

Kind regards,

 

Tanya

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Scalloway Castle
By scalloway
27th Jul 2016 12:59

If you post the invoice to Accounts Payable then post payments as they are made you should have an amount unpaid at the end of the financial year. You need to credit this sum to Insurance in the P & L and debit a provision in Accounts Payable. You may need to create a new account for this.

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