I have been receiving monthly commission payments from a supplier which I need to show as income. I assume the way the enter these commissions is to raise an invoice for each payment. Unfortunately I did not raise the invoices as the payments arrived and have not left any unused invoice numbers at the appropriate dates. Should I enter them on the next available number and back date to the appropriate time? This will the invoice numbers out of sequence. Or should I select an invoice number from around the appropriate date, e.g.1151 then create a modified clone invoice with a suffix e.g. 1151-A or 1151-1?
Or is there a more appropriate way to do this?
I appreciate your assistance
Thanks
Martyn Bush
Why not just tag commission received in bank in 4902 Commissions Received with out creating any invoices
Although certain commissions for financial services are exempt, most commissions are subject to VAT. Therefore if you are VAT registered, you will need to raise an invoice in order to include the VAT.
Hi Joe
This is not about VAT. It is simply about the mechanics of invoice numbers and how to put these invoices in sequence
That might do the job.
But I do have other income for which I will need to raise an invoice that is out of sequence. Which method should I use to do this?
Thanks for your help
You can do one invoice for commission based on bulk monthly figure, just create one customer Commission Received and allocate all receipt to it, end of month do one invoice
It’s important for other users reading the post to understand that if they are VAT registered, posting directly to the nominal code is not the correct method.
With regards to your question, the invoice number sequence does not have any bearing on the allocation of the invoice to the correct period, therefore the simple method is to use the next available invoice number.
As time goes on and if you complete your bookkeeping on regular basis, the date and invoice numbers around the appropriate time will correct themselves.