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Payment Date

What is the correct payment date to show on the account

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When I process a payment to a suppliers account should I enter the payment date as the date I authorised and made the transaction via BACS or the date the monies actually left the bank account?


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By Paul Crowley
16th Sep 2020 15:13

Up to you
But date on statement makes it easier to follow

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By lionofludesch
16th Sep 2020 18:23

Yeah - I use date of bank entry. Except for the odd cheque that still turns up occasionally.

Strictly, it ought to be date of authorisation, I suppose. Which might matter near a VAT quarter end if you're on cash accounting. Normally, it won't make a haporth of difference - I wouldn't worry about it too much.

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By Justin Bryant
17th Sep 2020 10:17

As has been shown here many times, the correct legal date for a transaction can be a vexed question and this is why the law has developed rules for certain payments re PAYE (DLA entry), dividends (interim when paid, final when declared - although that's based on legal obligation, so not really a rule as such) and so on.

Many others are basically unknown as far as I know e.g. see

It is wrong of course to apply one specific date rule to another situation e.g. the above PAYE rule to interest (not salary) or distributions receivable by a director in the absence of any case law or legislation to justify that.

I guess you could be flexible here and accelerate it if you want as an accrual (when there's a legal obligation to pay) or delay it to the physical payment date (or later if prepayment treatment applies).

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