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Experienced User
Newbie246
Posts: 47
Registered: ‎04-10-2011
Australia
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How to enter payment received for an invoice closed off in a previous financial year

Hi, I'm a little bit unsure of how to enter a payment for an invoice that was issued almost two years ago, and the balance due on the invoice was only recently received. All the data for this invoice has been closed off for that year, so, without raising another invoice which would be incorrect, how do I enter this in MYOB? As a Receive Money entry, and not allocate an invoice number/job number to it?

 

Any help would be greatly appreciated.

 

Thanks in advance :smileyhappy:

Ultimate Partner
CathieR
Posts: 936
Registered: ‎30-03-2009
Australia
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Re: How to enter payment received for an invoice closed off in a previous financial year

Hi Newbie

When you say that the data has been closed off for the year, I am thinking you just mean the Profit and Loss and accounts have been finalised.  That is to say, that the invoice has not been written off.

If that is the case, the accounts currently show the amount as still owing on the Customer Card and is part of Trade Debtors.

All you have to do is record "Receive Payment" for the customer - the same as all the other customer payments.

This will reduce the Trade Debtor balance and increase your bank balance.

If you are registered for GST on a cash basis you will be liable for the GST component of this payment.

 

If however, you have written off the old invoice, you will have to re-enter it in this financial year as a new invoice.  I would check with your accountant for this scenario because you may have to treat it as "Bad Debts Recovered"

Cathie Robilliard
BCom. (Acc/Finance) UNSW
MYOB Certified Consultant
BAS Agent
email:cathier@optusnet.com.au
Servicing Sydney South, NSW
Experienced User
Newbie246
Posts: 47
Registered: ‎04-10-2011
Australia
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Re: How to enter payment received for an invoice closed off in a previous financial year

Thank you for getting back to me so quickly, Cathie! :smileyhappy:

 

Your answer has been helpful, however, another issue I have is that the original invoice was created under a company that is now no longer trading - a new business was registered with a different ABN number (same owner), and that balance payment received was paid to the new company. So, neither the invoice, nor the customer's details, exist in the new company file. How can I correctly enter this payment in the new company?

 

Thanks again, all your help is much appreciated :smileyhappy:

Ultimate Partner
CathieR
Posts: 936
Registered: ‎30-03-2009
Australia

Re: How to enter payment received for an invoice closed off in a previous financial year

Did the new business buy out the old one?

Does the old company still exist?

It sounds like the new business has collected money on behalf of the old company.  This would mean you would record the money as "receive money"and allocate it to a loan account "Old Company Pty Ltd" in the liability section.  Then the old company would have to deal with the income and GST implications.

 

I recommend you contact your accountant to clarify the appropriate treatment of this payment as you circumstances are not known to us on the forum and we can only give general advice.

Cathie Robilliard
BCom. (Acc/Finance) UNSW
MYOB Certified Consultant
BAS Agent
email:cathier@optusnet.com.au
Servicing Sydney South, NSW
Experienced User
Newbie246
Posts: 47
Registered: ‎04-10-2011
Australia
0 Kudos

Re: How to enter payment received for an invoice closed off in a previous financial year

Thanks very much Cathie.

 

The old company is being phased out - the new company that was registered is carrying out all business under the new company name, so all payments received/to be received and all invoices issued etc, are now to be issued under this new company. The accounts (bank, visa etc) are still under the same account numbers. I'm unsure of how this will need to be recorded, so you're right, I may have to check with the accountant to see how he would like this entry to be made.


Thanks again for your help :smileyhappy: