We have a client using Sage, and we're trying to bring him over to Xero. However a lot of his customers pay him on account, and he only invoices later. I haven't worked out the correct way of showing a PA in Xero (we've asked Xero, but can't get a sensible answer from them). Is Xero actually capable of handling this, or shall I tell him to stick to Sage?
Comments
new
Totally agree. Xero are growing too fast IMO and growth for sake of growth is never a good thing. Get the basics right folks at Xero such as the issues noted above, then focus on add-ons, work papers, practice management etc.
Payments on account issue is ridiculous and the EC VAT issues make it non-compliant (unless you go for their crazy workaround of course)
Viv100
Totally agree. Xero are growing too fast IMO and growth for sake of growth is never a good thing. Get the basics right folks at Xero such as the issues noted above, then focus on add-ons, work papers, practice management etc.
Payments on account issue is ridiculous and the EC VAT issues make it non-compliant (unless you go for their crazy workaround of course)
new
Update from Xero
I'm pleased to report that the work to extend the VAT handling in Xero to ensure it properly encompasses EC VAT is more or less complete and in final testing for either of the scheduled February or March general updates to Xero.
As MET128 points out, and Ashley before, Xero does handle payments on account, has done for about three years, but if there's a separate consensus that says the way it does so could be improved, we'd be happy to take that on board and give it consideration.
Gary Turner
Managing Director, Xero
@garyturner
As MET128 points out, and Ashley before, Xero does handle payments on account, has done for about three years, but if there's a separate consensus that says the way it does so could be improved, we'd be happy to take that on board and give it consideration.
Gary Turner
Managing Director, Xero
@garyturner
Payments on Account 1 thanks
When you convert you will need to enter the Accounts Receivable figure into the Conversion Balances settings page. Ordinarily this figure will include these payments on account and should appear as credit entries, overall reducing the Accounts Receivable figure.
Once you have entered the Accounts Receivable figure, you will be asked to enter the Historical Transactions that support the balance. Here you can then enter both the unpaid Sales Invoices along with the relevant payments on account (as Credit Notes). The Credit Notes could be coded to a new Chart of Account code specifically for Conversion Payments on Account.
Going forward, as and when payments on accounts occur, your client could create a Prepayment Receive Money transaction directly from the Manage Account drop down menu. This works exactly like a Credit Note and will sit under the Contacts ledger until a new Sales Invoice is added, where it is then allocated off.
I've added two links below to our Help Centre that will provide in depth details about everything described above.
Xero Help Centre:
Enter historical invoices, bills & credit notes
Training Specialist, Xero
@ashtag_86