Money received without a sales invoice

Accounting
1

I have some work I do where the customer keeps track of my time and then just pays me for the work without me invoicing them. To correctly account for this should I…

  1. Record the payment in the bank and just tag it to the income nominal?
  2. Create a fake invoice and pay it with the bank payment?
2

Hi @Hactar

Unless there an invoice is already in existence, the best way to deal with it would be to raise a dummy invoice so you can record accurately where the money comes from and why (e.g. what you sold to your client). This is even more of a case when VAT is involved.

Hope that helps.

3

Yeah, that is what I thought but nice to have it confirmed. Cheers.