Question: How to insert provision (Audit Fee) in Treezsoft?
The tax invoice received from audit firm is Jun 2016 (current year). According to audit firm, this supplier invoice bills the audit service for account in 2015, thus this invoice shall be inserted back to 2015 account. But how do you insert this invoice back to previous year (2015) account?
Answer:
1. Create a provision via Journal Entry.
Go > General Entry > Journal Entry
a. Journal entry date shall be year 2015.
b. Credit Audit Fee Provision (this is a current liability)
c. Debit Audit Fee (this is a expenses account)
2. Create supplier invoice when received actual invoice.
Go > Supplier > Supplier Invoices
a. Supplier invoice date shall be year 2016.
b. Supplier invoice shall be entered by Account.
c. Select supplier as per normal.
d. Select account code “Audit Fee Provision (this is a current liability) when insert the details.
By using this method, audit fee expenses will be shown in 2015, while supplier invoice still remain 2016 and able to claim input tax accordingly.
You can read more on payments in TreezSoft by visiting these links:
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