Deferred Income & opening balances

[irenasobolewska]

Hi everyone, for complicated reasons I have had to rebuild all my SAGE data and start again.

I have two questions about what to do with deferred income from previous financial year which I hope someone can help me with.

1. How do I post money received for an invoice in the previous financial year (the amount is already accounted for in my bank balance). I need to have it showing as deferred income from last financial year so that when we finally finish the work we can take the amount to income (at this stage I normally just journal it from deferred income to the correct sales account).

2. How do I post the invoices issued in previous financial year that remain unpaid to the deferred income nominal code so that when the customer pays I can reconcile it. And when we finish the project I can take the amount from deferred income to the sales account with a journal.

Both the invoices that have been paid and those unpaid have already been accounted for in last years accounts - showing as deferred income and money received or owed.

Not sure if it makes a difference, but we're using SAGE 50.

[brucedenney]

These are one and the same issue.

You enter all the brought forward invoices onto the Customer and Supplier ledgers, these will create the opening balances for Trade Debtors and Trade Creditors.
Assuming you are on Standard accounting for VAT, all these will have been accounted for in the previous period so you can enter then as gross amounts on the T9 tax code.

Then enter a journal to set the opening Balance sheet to match the closing TB only all the P&L values go to P&L retained.

You should now be able to receive monies against individual invoices that are brought forward