Share this content

accounts software that can handle proforma billing

Didn't find your answer?

Im looking for s/w that can handle proforma/applications for payment ie it records a sale and debtor but doesnt record the VAT until payment has been made. Is there anything out there? I know Sage 50 an Order can be raised to create the document but it doesnt record the sale/debtor.

Thanks in advance

 

Thanks

 

Replies (11)

Please login or register to join the discussion.

avatar
By Leywood
26th Apr 2022 16:04

Just code with no vat?

Thanks (0)
Replying to Leywood:
avatar
By chrisholmes
27th Apr 2022 17:53

Wouldnt work as you still need to send a bill out for the full gross amount

Thanks (0)
Replying to chrisholmes:
avatar
By DKB-Sheffield
27th Apr 2022 18:57

Well it could work if you didn't want to show the VAT separately (gross invoice with OS VAT or similar) but, you'd need to then credit and reissue the VAT invoice on receipt of payment (or supply of goods or services) - when the 'tax point' is 'set'.

All of the software I know of that would have part of the capability you are after either works on a Sales Order basis (not entered in the AR so certainly not what you're looking for), or provides a 'Proforma'-style template that then is in the AR with full VAT accounting (standard or cash depending of scheme).

The issuing of a full VAT invoice (perhaps with proforma templates) is an issue. You could make manual adjustments to the return values for 'incorrect' tax points but, you would have to reissue all invoices anyway (with the correct tax point). The alternative (gross with OS VAT) needs constant review to ensure you don't miss any 'OS Invoice' corrections (credir and reissue) and end up under paying VAT!

The other issue with trying to do what you looking to achieve is a non-VAT issue. Your A/R balance and income figures on your TB will be incorrect! On the A/R side, your proforma debtors may not be debtors at all. No service supplied, no (apparent) contractual rights to payment etc. An adjustment will be required to ensure your accounts are correct.

In all honesty, I think your solution rests outside of the software. Either 'manual' proforma invoicing or, with an add-on/ app. There are a few integrated apps but, it depends on your software!

Thanks (0)
Enron
By Truecon
26th Apr 2022 16:25

Why would you want this?

Thanks (0)
boxfile
By spilly
26th Apr 2022 22:55

Surely this is just VAT using the cash basis rather than using the accrual method?
You can change the VAT method on Sage to use cash basis and then only pay it once payment has been received. Of course this also applies to purchases; you can’t mix the two methods.

Thanks (0)
Replying to spilly:
avatar
By chrisholmes
27th Apr 2022 17:55

Some client will want invoices only and dont accept proforma thus cash accounting settings wouldnt be applicable. Purchase would also want to accounted for under invoice accounting.

Thanks (0)
Replying to chrisholmes:
boxfile
By spilly
27th Apr 2022 23:13

You may be better off running a separate invoicing system then and importing the data for paid invoices into the main accounting software for the VAT. You then have the balance of unpaid invoicing showing in this external system and can journal that over if desired for management accounts etc.

Thanks (0)
Replying to spilly:
avatar
By chrisholmes
28th Apr 2022 07:56

Thanks for your reply. I was hoping we could manage the process in one system rather than 2.

Thanks (0)
Melchett
By thestudyman
29th Apr 2022 12:33

It would probably be easier if you could somehow avoid the pro forma invoices process as much as possible. Pro forma invoice accounting has always been a mess...

Thanks (0)
Replying to thestudyman:
avatar
By chrisholmes
30th Apr 2022 12:44

Easier may be but there is a significant cash flow effect doing it.

Thanks (0)
avatar
By the_fishmonger
03rd May 2022 13:47

If you use Quickbooks Online, you can re-title Estimates to Pro Forma or set up a custom invoice type called Pro Forma with whatever you need.

Not tried it, as no need, but the uk-quickbooks-community has those questions posed with answers.

Check specific software User Forums before here, you'll often find exactly what you want has been asked and answered before

Thanks (0)
Share this content