-----BEGIN PGP SIGNED MESSAGE----- Hash: SHA1 If you think it through cash accounting basically means that you can't have any open invoices - at least not at yearend. What I would do is adjust the $500 invoice to "$300 - installment 1". You received the money and hence you can close the invoice. Then you issue a second invoice for "$200 - installment 2" in January.
If a customer doesn't pay at all - well you had fun but you can't issue an invoice. I don't know about the US but I'm also in service business but never did any cash accounting. It is neither typical nor useful because customers just don't pay cash. Over here every accountant understands it but the situation may be different in the US. Regards, Bernd On Wed, 13 Apr 2011 04:52:11 -0400 (EDT) Luke <[email protected]> wrote: > On Wed, 13 Apr, Bernd Plagge wrote: > > > ok, if you run on a cash basis then you're right. > > Sales are only realized once you receive the money. > > Then, of course, you can only post costs which actually occurred i.e. > > what has been paid for. > > > > Maybe I fail to see your problem ... > > Hmm.:) My problem may be that I was misinterpreting the instructions for > dealing with this situation. > > So let me see if I have this right. > > In 2010, a $500 invoice is posted. $300 of it is paid before the end of > the year, and $200 will be paid in 2011. > > I need to record that $200 as being paid in 2010, thus closing the > invoice. > > I then create another 2010 invoice, only for the $200 portion of the first > one. > > When the customer pays the remainder on the first invoice, I apply it to > the second instead. > > If that's correct, I only have one remaining question. > > Where do I receive the first (artificial) $200 payment to? Normally it > should debit a cash account. > I'm guessing I have to use some clearing accounts. > > Thanks > > Luke > _______________________________________________ > SQL-Ledger mailing list > [email protected] > http://lists.ledger123.com/mailman/listinfo/sql-ledger -----BEGIN PGP SIGNATURE----- Version: GnuPG v1.4.10 (GNU/Linux) iEYEARECAAYFAk2lcxYACgkQpYU8M8PbPV4EdwCfRJ6PqGPr1d1PyCo/gkTKlTzH nawAoJsBjE9xn1pzMPRUNe5CktRBcdH0 =6TiV -----END PGP SIGNATURE----- _______________________________________________ SQL-Ledger mailing list [email protected] http://lists.ledger123.com/mailman/listinfo/sql-ledger
