Receiving deposits/pre payments
Hello, Can anyone help with the following question - Do prepayments/deposits show up as sales for the particular month the prepayment/deposit is received? A customer wishes to prepay for some work to be done, but we don't want it to show as sales until the work is completed. (Nice position to be in I know, but it could have a negative effect on us for that month) Hope that makes sense. We are using Account Right. Thank you
Hi Twizzy,
Thank you for your post. Yes the deposit is reported in the month it is received. Our help article Customer prepayments has information and instructions on how to handle a customer prepayment within AccountRight, however if you don't want it to be reported when it is received I would recommend speaking to your accountant or financial advisor for an alternative or the ATO as there is specific rules for reporting deposits.
Please do let us know if you have any further questions.
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