In Frederic's mail, you should read of course "a pro-forma invoice is not a legal document that you can use in your books."
Alexandre On 20/11/2013 14:08, Frédéric Clementi wrote: > @ Eric : > -- That is my problem today. Those modules are great but rely on the > default AR account which is incorrect in my opinion. > This is not a technical issue (actually Guewen answered perfectly the > technical question) but an accounting/SOP issue -- > > FYI you cannot accuse me to be too technical... I am not a developper > ! actually I have an account background :) > > Joke appart, to sum up my message below : do not create a prepayment > account instead of using the usual AP/AR accounts. > > I used MG comments to explain my point : > > > Hello > Pre-payments transactions differ from cut-off issues! > > No. Be careful to accounting terminology. Let clarify what I mean with > that example found on the web here > :http://www.accountingcoach.com/blog/prepaid-expense). I rephrased it > to simply : > > *01-dec *: you pay your next 6 months insurance for 6000 $ -> debit > 'Prepayment account' - credit 'Bank account' for 6000$ (note that > there are no expense recorded in my books at this stage) > * > * > *31-dec* : as it is the last day of your fiscal year, you want to > exclude 5 months paid but related to the next fiscal year -> Debit > 'Insurance expense account' - credit 'Prepayment account' for 1000$ > (*this is a cut-off entry* -> I record an expense of 1000$ on my > current fiscal year) > > *01-jan* : I reverse my cut-off enty -> debit 'Prepayment account' - > credit 'Insurance expense account' for 1000$ > * > * > *01-mar* : imagine that I receive my insurance invoice that day -> > debit 'Insurance expense account' - credit 'Prepayment account' for 6000$ > > > > A prepayment is made at the request of a partner as a necessary > condition for him to deliver the service or the product; as such > it is recognized in the books as a payment in advance (for an > invoice to be received); it is usual to receive a pro-forma > invoice (for ecommerce the transaction amount is either sent by > email or just stated on a web page (that can be printed offline). > > > I found this stated on some website as well but again be carefull with > this is partially wrong. > 1st point - a pro-forma invoice is not a legal document that you > cannot use in your books. So, the accounting entry to be recorded is a > basic payment -> debit 'payable account' - credit 'bank account' (if > you pay money to a supplier) OR debit 'bank account' - credit > 'receivable account' (if you receive money from a customer). > > 2nd point : if you recevable money from a customer for some goods you > have delivered and that you have not invoiced yet you do not have to > use a prepaid account ... you have to use instead the usual receivable > account. > > Conclusion : a prepaid account must be use for cut-off purpose in > order the fullfill the segregation of period principle when you paid > something that must must linked to a other fiscal year .....but not to > record any payment that you receive or you pay before the invoice > booking like a simple goods delevery. > > Hope this clarify my point. > > Frederic > > > > > _______________________________________________ > Mailing list: https://launchpad.net/~openerp-expert-accounting > Post to : [email protected] > Unsubscribe : https://launchpad.net/~openerp-expert-accounting > More help : https://help.launchpad.net/ListHelp -- Alexandre Fayolle Chef de Projet Tel : + 33 (0)4 79 26 57 94 Camptocamp France SAS Savoie Technolac, BP 352 73377 Le Bourget du Lac Cedex http://www.camptocamp.com
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