General Ledger Entries for a Regular Invoice with Pre-Invoices
When you post a final, regular invoice that has paid pre-invoices applied to it, Vantagepoint reverses the credit to the pre-invoice receipt offset account.
Pre-invoices, themselves, do not generate general ledger entries. However, the cash receipts that you enter for paid pre-invoices generate a credit to the pre-invoice receipt offset account. Specify the default general ledger account to credit for pre-invoice cash receipts in the Pre-Invoice Receipt Offset field on the Options form in . This is usually a liability account. This account is debited when you post a final regular invoice that has paid pre-invoices applied to it. The accounts receivable account is credited.
Example
The following is an example of the general ledger account postings for a final, regular invoice for $80,000 that has a paid pre-invoice of $30,000 applied to it. The tax rate is 10%.
Account | Debit | Credit |
---|---|---|
Fee Revenue | $70,000 | |
Reimbursable Revenue | $10,000 | |
Unbilled Revenue | $80,000 | |
Accounts Receivable | $85,000 | |
Unbilled Services | $80,000 | |
Tax | $5,000 | |
Pre-invoice Receipt Offset Account | $30,000 | |
Accounts Receivable | $30,000 |
The tax is calculated after the pre-invoice fee amount is applied to the regular invoice. This is 10% of $50,000 ($80,000 - $30,000). Taxes were calculated and collected for the $30,000 on the pre-invoice.