Payment from customer after tax year end

How to record this transaction

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Hi everyone,

I have a question.

My customer paid for my services after the tax year end. So this amount is included in previous tax year calculation  in sales.

How to record this transaction? 

Thanks!

 

Replies (15)

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By jcurran
29th May 2020 17:26

If it wasn't received it should have been a creditor as he owed you money that amount just clears out the creditor

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Replying to jcurran:
By johngroganjga
29th May 2020 17:52

Quote:

If it wasn't received it should have been a creditor as he owed you money that amount just clears out the creditor

Debtor ...

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Replying to johngroganjga:
By ireallyshouldknowthisbut
29th May 2020 20:27

Nice.

Debtors by the door? Creditors by the window?

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By SXGuy
29th May 2020 17:27

1. No need to post as anonymous
2. Record it how and where?

You give no detail as to where you are recording it, book keeping software? Self assessment? What?

Come back without being anonymous, give more detail and you may get some answers.

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Replying to SXGuy:
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By Tax Dragon
29th May 2020 17:31

Or... (where have you heard this before?)

OP, ask your/appoint an accountant.

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Replying to SXGuy:
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By orinar
29th May 2020 18:50

1. Does it matter if I posted as annonymous or not annonymous? Is it any difference?
2. I would like to record all financial transactions in Sage and prepare Trial Balance for myself. Not as a professional, just to get some practice as I am AAT level 2 student and I downloaded Sage to get the better understanding of this what I currently learning. I still don’t understand a lot and I really don’t know why some of you are just rude.

Thanks.

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Replying to orinar:
RLI
By lionofludesch
29th May 2020 19:33

Bang goes your anonymity.

So no, it doesn't matter.

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Replying to orinar:
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By Cheshire
29th May 2020 22:08

1) yes, read the site rules

2) no-one was rude.

The aat have a forum, you might do better on there. You have a hell of a lot of study to do yet, level 4 is a long way off.

How did you show the amount owing at year end?

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Replying to orinar:
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By Accountant A
15th Jun 2020 18:28

licy

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Replying to orinar:
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By SXGuy
30th May 2020 07:51

So if you posted the sale in sage and no payment was made in the current year then obviously that sale remains unpaid and would be shown as such as a debtor on the balance sheet. When the payment is received regardless of which year it would still be allocated to that sale receipt. The magic of sage and other accounting software is it would handle the change on the balance sheet for you.

I Apreciate you are a newbie at accounting but surely you must know already that if a payment is received for a sale it is to be allocated to that sale regardless of when a payment is received?

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By johngroganjga
29th May 2020 17:54

It clears the debtor you took into account in the sales figure in last year’s sales figure. That is all.

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Replying to johngroganjga:
RLI
By lionofludesch
29th May 2020 18:38

Or ..... is the OP on the cash basis ?

Who knows ? Probably not even the OP.

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Replying to lionofludesch:
By johngroganjga
29th May 2020 22:27

He can’t be because he said the sales receipt this year was in sales last year. That is the whole point of his question.

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By Tax Dragon
29th May 2020 21:36

Who was rude?

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Replying to Tax Dragon:
By mrme89
30th May 2020 00:17

The OP.

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