Can you help me to understand how can I achieve the first step, please?
“1. Find the money coming in on the bank and click to tag. Select the option ‘Payment from a customer’.”
There are more ways?
Should I send an invoice for the deposit payment or not?
If I receive a payment from my client, can I register manually in my quickfile account the payment to follow the first step? I’m confused.
I am not an accountant so it would be best to check with one to be completely sure, but I would raise an invoice for the deposit and then raise a second invoice for the total less the deposit when the event is due to take place. I think it would make it easier to keep track of the money movement this way.
Yes - you want to add a transaction into your petty cash ‘bank’ account. Once the Money in has been recorded you should be able to link this to the invoice you have created
You may have to check with an accountant for specifics. It is up to you how you process deposits/invoices - whether you want to create a deposit invoice or just the total invoice if they have paid for the full event. If you are questioning for VAT purposes then I would definitely check with an accountant to make sure that you are processing correctly.
I’m not questioning for VAT purposes, and unfortunately, I can’t afford an accountant right now, so any help is very useful.
I can see in the previous topic that the payment for the deposit is tagged to the client account (Payment on account (Assign later)), not to an invoice.
“I would raise an invoice for the deposit and then raise a second invoice for the total less the deposit”
What is happening with the invoice for the deposit in this case? Remains unpaid?
You can give them whatever you want. This is why I use the other method as the deposit invoice shows up on their statement and they can see exactly where the payment went and what it was for and it also saves me having to manually generate any other paperwork for the job.
The first method helps us to separate the deposit and the income. The deposit becomes income only when we issue the invoice and we use it as payment.
What is the solution for the second situation? How we can separate the deposit from the income if the second/final invoice will be issued, maybe, the next financial year?
Even though he is an accountant I would be hesitant to blindly follow a vague posting on the internet. You can easily find posts from people saying yes and no to any question you ask so take anything you read with a pinch of salt. Each to their own though.
Other Creditors is not a nominal you would process invoices against which is why it is not showing as being one of the options in the drop down.
I think the easiest and most simple way for you to account for your deposits is to create an invoice and tag the payment to this - leaving the ‘other creditors’ alone.