Record Overdue Utility Bill

I’m helping my aunt to set up manager for her mini mart business. SHe has some overdue/unpiad utility bills (electricity and rental) from previous months. How I do record these unpaid invoices as starting balance?

These would be entered as starting balance purchase invoices, with dates from the original invoices, before your Manager start date. See the Guide: Manager Cloud.

I already tried that. Entering invoices from Starting Balance Account Payable is only for Inventory Items. Expenses options are not there…

You enter the Invoice but with a date earlier than your Starting Date. The invoices are registered as starting balances for your supplier and do not effect your expense accounts

But I want to enter outstanding electricity bill amount, which is an expense account item

Sorry, that was not clear from your original post. You are saying that you want to enter an expense item which has a invoice purchase date before your starting date?

Is she doing her accounts on a cash basis or on an accruals basis?

If you are using accruals , to get the amount posted to an expense account, you will have to enter the invoice with a date after or equal to your starting date. Either change your starting date or use the Starting date as the invoice date. This is not normal accounting practice. The expense should have been accounted for in your previous accounts.

If her accounts are on a cash basis, then the expense account will be debited when the payment is paid

Yeah, she is a bit behind on her expenses payments.

In this case, how would she know the remaining balance, if she pays only part of the overdue amount?

She wouldn’t - that’s cash accounting for you


Thanks, Joe. I set it up on accrual basis. Now everything seems to be tallied :slight_smile: