I’m no accountant and find myself in a dilemma. Hope someone out there can help. So the scenario is:
I work as an IT consultant to various schools. I invoice schools for my services who then process the invoices and pass them to the local authority for payment. I then receive a bacs payment from the local authority with an itemised list of my invoices and one total payment. ie lets say I receive £5000 against three invoices, 1.5k, 1k and 2.5k.
Quick file sees the 5k received into my bank but cannot (obviously) find a single invoice for 5k. How do I tag the payment to the respective individual invoices?
Thanks in advance
It depends how you’ve invoiced the work. When you select payment from a customer there’s a button saying “pay down multiple invoices…” which you can use if all the invoices are for the same “client” in QuickFile - click this, enter the client name, and you’ll get a list of all invoices for that client and you can assign the payment to any combination of those up to the payment total. So if your invoices are all to the one “Anyshire County Council” then you can just do that.
If the invoices are to different clients (you’ve addressed each invoice to the individual school) then the simplest way to deal with it is to create a dummy bank account called something like “split payments holding account”, Mark the individual invoices as paid into that, then mark the money in to your current account from the authority as a transfer from the split payments account to return its balance to zero.
As an example. Create a new account.
If you have 5 invoices totalling £50 each.
You would cr bank £50 5 times. Tag it to all those invoices as paid.
Then create a money out transaction for £250 and tag it as a transfer to your current account. It will match up with the payment you received by bacs.