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Accounting on turnover or collected

Banana Accounting allows you to manage the accounts and also the customer and supplier invoices both on an accrual basis and on a cash basis.

Banana Accounting allows you to manage different accountings as well as customer and supplier invoices, on both an accrual basis and on a cash basis. Most programs allow you to monitor customers and suppliers and set up invoices only if you work on the accrual accounting principle. Banana Accounting instead allows you to automate these operations even if you work with the cash principle.

Revenue accounting (accrual principle)

Invoices must be recorded both when they are issued and when they are cashed.

  • This system will ensure that the balance sheet includes outstanding debts and credits.
  • It is mandatory for companies that are subject to the obligation of presenting financial statements and when dictated by law or by VAT regulation.
  • Invoices are recorded at the time they are issued (customers) and received (suppliers).
  • If the service is not paid by cash, a credit or debit will figure in the balance sheet.
  • Any adjustments to the invoice must be made under the form of credit notes
  • Upon payment, the credit or debit is extinguished
  • The revenue or cost is shown in the income statement of the year in which the invoice is issued
  • The VAT is recorded and is therefore due or refundable in the period corresponding to the invoice issuance.
    Even if the invoice is not paid, you will have to pay the VAT.

Operating procedures for the accrual principle

  • Use Double-Entry Accounting or Income & Expense Accounting.
  • Set up the customer and supplier details in the Accounts table.
    • Customer and supplier accounts must be set up as Balance Sheet Accounts (BClass = 1 for customers, BClass = 2 for suppliers). 
    • The client group (ledger) will have to be totalized in the Asset section.
    • The supplier group (ledger) will have to be totalized in the Liability section.
  • Transactions.
    • Are entered directly, the entry date is generally that of the invoice issue date.
    • The account of the related customer or supplier is indicated as a Credit or a Debit account.

Cash accounting (cash principle)

Invoices are entered only when they are paid. Administrative management is simpler because accounting matches exactly the progress of the bank or cash account. There are no open invoices in the financial statements, so you do not have an explicit view of the company's financial situation.

It is used for private individuals, small businesses, associations with limited assets and turnover and in cases where it is authorized by law and VAT regulations.

  • Customer and supplier invoices figure in the accounts at the time of payment.
  • The revenue or cost is shown in the income statement in the year in which the invoice is paid.
    As long as the service has not been paid for, it is not included in the income statement.
  • VAT is recorded at the time of payment.
    If the invoice is not paid, no VAT is paid.
  • If you want to keep monitor customers and suppliers, you also record the invoice at the time of issuance or reception, indicating the customer and supplier account as a cost centre.

Banana Accounting allows you to have control of customers and suppliers, issue invoices, even when working with the cash principle.

Operating procedures for the Cash principle

  • Use Double-Entry Accounting or Income & Expense Accounting.
  • Set up the customer and supplier details in the Accounts table.
    • Customer and supplier accounts must be set up as cost centres (CC3, preceded by ";").
      In this way you will monitor the situation of each individual customer, without the amount appearing in the Balance Sheet.
    • The client group (ledger) client group MUST NOT be totalized in any other group.
    • The supplier group (ledger) client group MUST NOT be totalized in any other group.
  • Registration of issuance / payment of Customer invoice
    • Issuance of Client invoice
      • The cost centre of the customer is indicated as a positive (without sign)
      • Only the amount figures in In the entry , but no account.
      • The invoice is recorded in the cost centre at the time of issuance.
      • The registration date is generally the one figuring on the invoice.
    • Reception of Client payment
      • The date is that of the reception of the client's payment
      • The Debit account will be where the money is received.
      • The Credit account is that of revenues.
      • VAT code is indicated, if applicable.
      • The cost centre relative to the Customer is indicated (with a negative sign).
  • Registration of invoice received from Supplier
    • Reception of Supplier invoice
      • The registration date is generally the date of reception of the invoice.
      • The cost centre relative to the Supplier is indicated (with a negative sign
      • Only the amount figures in In the entr , but no account.
      • The invoice is recorded in the cost centre at the time of reception.
    • Payment of Supplier invoice
      • The entry date is that of payment.
      • The Debit account is Costs..
      • The Credit account is where money is paid from.
      • VAT code is indicated, if applicable.
      • The cost centre relative to the Supplier is indicated (with no sign).

 

 

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