Hi Outhere,
I have a Deposit invoiced printed and with the client for the amount of $2k which is 8 months old and unpaid, but two substantial larger invoices have been paid. There are 3 more invoices yet to be invoiced with further works to be completed.
My dilemma is how to solve this, how do l complete last years accounts and be able to balance them?
Lyndsay
Hi LyndsayB
Thanks for your post. When an invoice is created the amount is debited to the Accounts Receivable asset account and credited to the selected income account. When a payment is recorded the Accounts Receivable account is credited and the bank account is debited.
Accounts Receivable, also known as Trade Debtors, is the amount owing to the business for goods and services.
If an invoice is unpaid it stays posted to the Accounts Receivable account until payment is made or it is written off as a bad debt. If the customer is no longer required to pay that amount you could process a customer return and apply that to the invoice to clear the amount owing.
Please let me know if you need further help.
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