Payments for more months

1

Hello, i’ve been thru a quantity of posts but i dont seem to find what I need.
so our customers pay the school fees every three months, and we only issue receipts , not invoices. and i dont know how to register properly the payments, cause at the moment i find my self with a big profit e.g. the month of September and then a loss in october and since we are supposed to pay the taxes monthly, this is giving us issues. thnk you for any suggestions

2

So why not use invoices and enable them to be recurring. The receipt is only evidence of payment. The invoices help with scheduling these.

3

Your question is a general accounting question not a specific Manager.io question.
Your question relates to “Accruals and Deferrals” - in your case Deferrals, and information regarding accounting for deferrals is available on the internet via various accounting coaching/learning sites.
You should also seek professional accounting advice regarding tax reporting requirements in your jurisdiction.

If you decide to use deferrals then I suggest the following:

  1. Create a liability account in the Balance Sheet named, say, Deferred Fee Revenue
  2. All receipts for school fees are then recorded to this account
  3. At the end of each month journal one third of fees received from Deferred Fee Revenue to Fee Income account in the P & L.
    If you want to have detailed records for each separate student, investigate the use of “Special Accounts” for the Deferred Fee Revenue account ( see these guides - https://www.manager.io/guides?special-accounts and https://www2.manager.io/guides/10555)
4

apologies for such a late reply… i can’t use invoices because i’m not subject to VAT and for the local laws, i can’t issue invoices, unluckily.

5

I’m an accountant myself, the problem was not what to doin the accounting principles, but how could i solve the case in this specific software. anyway your suggestion is the solution, actually, i created a deferral fee account and report the amount every month. for the "special accounts"unluckily, i’m really struggling to understand tha use of them, the guides didn’t help. so at the moment i keep an external excel to keep them under control. I’m still trying to understand the special accounts but , so far, i’m still in the dark.
thank you all for help