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…
- Record the payment in the bank and just tag it to the income nominal?
- Create a fake invoice and pay it with the bank payment?
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.
Yeah, that is what I thought but nice to have it confirmed. Cheers.