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Community > Small Business >

Accruing Split Bill Payments

Started by Anneke Jochem -   in Small Business

Am I able to accrue split bill payments over 6 mths - for an invoice entered in full?
So that it does not show as a full amount outstanding on the P&L and aged payables?

For example - ACC bills (Entered for the year - date on invoice).
Paid mthly over six months (split). Would prefer bill to show as split payment amount each month (in P&L and A/P) rather than in full. On the date it was entered.

Best Reply as chosen by Kelly M (Community Manager)
Enter the full bill so you can apply the payments to it, code the cost to a balance sheet account. Then enter a manual journal to run each month Dr ACC expense, Cr the balance sheet account used. Set the manual journal to auto post for the six months. This will still leave your AP with the remaining balance of the bill which is the correct position but the other balance sheet account used will offset this and you could group them together for reporting if you wish. This also accounts for your GST correctly for whichever basis you are registered, Invoice or Payments basis.

Margaret Haines