So to preface I’m pretty bad at all things accounting but I’m trying.
For simplicities sake (in my mind at least) once we swapped over to manager I put the starting date to 1st of January 2019. One of our suppliers just delivered an order that was made in December 2018. The deposit was made in 2018 and the final payment 2019.
Is there a work around for me to be able to add the 2019 payment and the new stock without messing up the price of the inventory? Or can I manually change that?
You have to create the supplier and set a starting credit towards him at 1/1 of the partial payment. You will have a negative liability. Once you’ll create the supplier invoice it will result as partially paid.
Otherwise you can create a special account (Credit Vs Suppliers) in assets with a subaccount with the name of the supplier and again set the starting credit. In this case you’ll have a positive liability. In this case you’ll have to create a more complex supplier invoice since the first line should go against the credit and the second towards accounts payable.
Under a more puristic accounting point of view I prefer the second solution.
Another way to accomplish the same thing is to create a pre-start-date purchase invoice showing only the amount still due on the start date. No entry is required for the supplier credit that way. This will also establish the correct Accounts payable balance for the supplier.
Whichever way you do this, make sure that your starting balance inventory count reflects what you actually have on hand on your start date, whether paid for or not. Pre-start-date purchase invoices are only used to set Accounts payable balances, not inventory counts.
This would be inaccurate, as there is no pre-start-date purchase invoice existing at the start date .
The “order” (which has no financial impact) and the deposit was made pre start date but the delivery and the purchase invoice (the liability) did not occur until after the start date.
That would depend on the exact sequence of events. Did the supplier send a sales invoice before the deposit? (Some suppliers operate that way.) Regardless of whether a sales invoice was sent before the deposit, was one dated before the start date? Were goods shipped before the start date but only arrived afterwards? @WildTZ did not specify any of those circumstances in his post. If any or all are true, a pre-start-date purchase invoice is the correct approach, because the balance due against it is an account payable, and the supplier credit from the deposit has been used.
Your comment that “…the purchase invoice (the liability) did not occur until after the start date” is not supported by anything @WildTZ wrote.
Correct, but if you had understood @Davide response “You have to create the supplier and set a starting credit (balance)” (i.e. supplier overpaid) based upon @WildTZ’s “The deposit was made in 2018” which @WildTZ ticked as a solution then you should have been sufficiently informed (as @Davide was) that the purchase invoice occurred post start date, as you wouldn’t be creating a “supplier starting credit balance” if the purchase invoice had existed pre start date.
Equally, your comment that " No entry is required for the supplier credit that way " is not supported by anything @WildTZ wrote, as they only made reference to a “deposit” not any “supplier credit”.
It’s your self creation of this non-existing “supplier credit” that caused your posted response to be labelled inaccurate, as it also ignored and contradicted the ticked solution.
