I’ve just imported my trial balance from the previous year ending on July the 31st and tagged all the oustanding invoices in the Debtors Control Account. I’m a bit confused as I can not see any money owed to me from last year despite I registered them as debtors, but they appear on my trial balance.
I’d like to know what would be the procedure to record these client payments. I’m aware that I’d need to raise these invoices and record the payment, but not sure of what I have to do with my trial balance and how to amend it if I needed.
Do you have any outstanding invoices at present? The total on the dashboard is made up of outstanding invoices rather than the balance in the Debtors Control Account nominal.
With a payment for an invoice in a previous system, you would create the invoice for the client on QuickFile, and then adjust the trial balance journal by decreasing your sales and the debtors control account by the same value (VAT would also need to be adjusted if required).
For reference, when you create an invoice and mark it as sent, you can go to More Options and select Show nominal ledger entries to see what nominals the invoice itself are using.
I have all the invoices from previous year sent and outstanding, but they appear now again on the debtors control account. I don’t really know how to adjust that amount in the trial balance journal. Also, should I do it when they get paid or I have to do any adjustment before the payment?
There are 2 ways to get the effects of an invoice, which would be either on an invoice-by-invoice basis (as mentioned above):
Or, from the Chart of Accounts (found under Reports). By default an invoice will be assigned to 4000 General Sales as well as the debtors control account.
It would just be taking the values from your newly created invoices, and removing them from your Trial Balance. So if your TB states you have a balance of £100.00 in your debtors control account and £100 in general sales, which also matches the invoice you have created, you would deduct this from the TB report so you only have 1 entry, rather than 2.