Billing Date

by Maria
(Ontario)

Hi,

What date should we use for the bill? The date when the service happened or the date we received the bill?

If we use the date the service happened, the Board of Directors has already reviewed that month.

If we use the date we received the bill, then it's not a match with the budget month.

Please advise. Thanks a lot.



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Maria, you enter the bill by the date on the invoice ... NOT the service date ... and NOT the receipt date. Then set the due date according to the terms of the invoice.

Comments for Billing Date

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Apr 27, 2011
 Billing Date
by: Anonymous

Hi There,

Normally, if the month is not closed, for example it is now April; when you receive the invoice, you put the invoice date, such as April 22.

But if you receive a March invoice in April, and the March month accounting book has been closed, I will input April 1 as the invoice date.

When doing your budget comparison, you can write down the reason for the difference as timing and explain that you received the invoice after the books were closed.

When you are expecting an invoice to come before you closing the books for the month but you haven't received it in time, what you can do is make an accrual entry estimating the amount. You would reverse the entry when you receive the invoice in the next month.
Mar 25, 2014
 Which date to use from received invoices
by: Kyle, St. Catherines, ON

Hi Lake.

If I receive an invoice in the mail (for example) on March 24, and the invoice is date March 18, which one should I use when recording the Accounts Payable transaction?

Up until now, I have been using the date I receive the invoice (though it is due 30 days from the invoice date). Thanks!
Mar 25, 2014
 Invoice Date
by: Lake

Hey Kyle, when doing accounts receivable or payable data entry, always use the date of the invoice or bill. It ensures you are matching your revenues with your expenses (which is an accounting principle).

The bonus is you will be able to use your aged receivable or payable report to manage your cash flow.

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