Turnover doesn't increase when an invoice is marked as paid

[Lorn_Campbell]

I noticed that my turnover in my profit and loss does not increase when I mark an invoice as paid??
Thanks in advance for any help…

[ian_roberts]

That’s correct, for the purposes of your accounts the income is recognised as soon as the invoice is issued, rather than only when it is paid.

[Lorn_Campbell]

Thank you Ian. How would I give an accurate income and expenditure report at a meeting if this is the case?

[ian_roberts]

You can use the advanced search function within “view all payments” on both the sales and purchases sides to get the total amount paid (as opposed to invoiced) between particular dates, if that’s what you mean.

The P&L report is always based on sales and purchases invoiced, so it doesn’t count pre-payments that aren’t yet invoiced and it does count invoices that have not yet been paid. This is normal for accounting purposes, you recognise income as soon as you have issued an invoice and expenditure as soon as you know you will need to pay for it.