I have read January's thread on the subject and would like to add my comments...
In the UK, (at least) an invoice is REQUIRED for a prepayment as it raises a liability for VAT. On other systems, in the past, we have simply raised an invoice for the value of the prepayment of the sale price and posted it as a sale. I agree with Chris, that this is not correct. For a sale of goods scenario (like mine), one way is to: 1) Issue an invoice for a service "prepayments" that goes to a ledger account "unearned income received" 2) at the time of shipping: a) Issue an invoice for the full amount for the goods sold b) Issue a credit for the prepaymet This has the advantage that, for export purposes, the invoice correctly covers 100% of the value of the goods. Some people may not like to send 2b to the client, in which case there is a variation: 3a) Issue an invoice for the prepayment value for the goods sold b) Issue an invoice for the balance (if any) c) Issue a credit for the prepayment value for the prepayment service. Only 3b needs to be sent to the client. 3a and 3c are kept on file as they cancel each other. In a service scenario, or where a client orders a subscription of 12 montly newsletters, then 3a and 3c are could be issued monthly. Regards John Bell ------------------------------------------------------------------------------ _______________________________________________ Ledger-smb-users mailing list [email protected] https://lists.sourceforge.net/lists/listinfo/ledger-smb-users
