IT Consultant working through a limited company.
Worked for a Client in March 2013. Gave them invoice for work, dated the invoice 31.03.13
the invoice was rejected because UK vat was charged and the Company is in Belgium. Resubmitted the invoice again in May and dated it 07.05.13 It was accepted with no vat charged. - Take it this is correct??
Year end is April 2013.
Which year should the invoice be put in?
Many thanks
Replies (8)
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you should put it in as an accrual as it is not technically a creditor as the invoice date is after the year end, but you should accrue for it as the expense has been incurred before the year end :)
No - it would be accrued income
you should put it in as an accrual as it is not technically a creditor as the invoice date is after the year end, but you should accrue for it as the expense has been incurred before the year end :)
Accrued income is a debtor (DR Debtors CR Sales).
Doesn't it depend when the credit note is dated?
If the original invoice were not credited until after the year end then the net sales will still be correctly stated and the only adjustment would need to be for the VAT. (Cr trade debtors, Dr VAT creditor)
Credit?
Where does the OP mention a credit?
Sounds to me like the original invoice was scrapped and not recorded.