How do I post a Deferred Income Job Invoice?

How do I post a Deferred Income Job Invoice?

Ostendo allows you to create Job Scheduled type invoices with an Accounting Style of 'Income Deferred'. This will allow the income portion of the claim to be mapped to a Balance Sheet Liability account rather than a Profit and Loss Income type account. Large project managed type industries can occasionally use this method, although it is extremely important that the Ostendo Partner works closely in with their clients accountant when implementing this feature. Ensure you and the client fully understand the implications of this before proceeding.

When using the deferred income option Ostendo will generate Income and GST to the Deferred accounts. You cannot use this function if you have Cash Immediate Sales turned on from the System Settings.

Deferred Income in Ostendo works on the basis that claims upto the final claim are to be flagged with an Accounting Style of Income Deferred, these will push entries into the respective Deferred Income, COS and Tax accounts. Then when you raise the final claim, you would flag that as being Income Recognised. This will then put through Income recognised jnls for all claims up to that point.

NB: You must then manually reverse all previously posted deferred jnls directly in MYOB

To indicate whether the claim is Deferred or Recognised, change the Accounting Style drop down on the scheduled claim record before you create the invoice (Job Invoices screen)

 

Example as follows (assuming you are on Invoice Tax Basis):


Initial Claim (Deferred Income with $750 + 15% GST being claimed with Job Costs of $500) creates the following jnl
DR Debtors $750 
CR Deferred Income $750 (no Tax Code)
DR Debtors $112.50
CR Deferred Tax $112.50
DR Deferred COS $500
CR WIP $500

Then final Claim is made (Income Recognised with $250 + 15% GST with Job Costs of Zero) creates the following jnl
DR Debtors $287.50
CR Job Income $250 (with Tax Code)
CR Tax $37.50


Ostendo automatically then creates the following jnl relating to the previous Deferred Income Claims
DR Debtors $862.50
CR Job Income $750 (with Tax Code)
  CR Tax $112.50
DR Job COGS $500
CR WIP $500


Then finally you must MANUALLY JNL in MYOB
DR Deferred Income $750 (no Tax Code)
  CR Debtors $750
CR Debtors $112.50
DR Deferred Tax $112.50
CR Deferred COS $500
DR WIP $500

 

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