A company provides a service for a total amount of €2,000 including tax . Once the service has been provided, the invoice has not yet been issued . In accounting, this translates as follows:
Account Label Speed Credit
418 Customers – Products not yet invoiced 2000€
44587 VAT on invoice to be established 400€
706 Services 1600€
Example #2: the invoice has been issuedOnce the invoice has been issued , you must transfer the amount of the customer british student data receivable from account 418 to the traditional customer account: account 411. The accounting entries will therefore be as follows:
Account Label Speed Credit
411 Customers 2000€
418 Customers – Products not yet invoiced 2000€
Our best practical advice
For proper accounting, it is important to effectively manage account 418 “Customers – Products not yet invoiced”. To do this, we strongly advise you to:
To carry out dashboards to establish rigorous monitoring of goods delivered and services performed but not yet invoiced;
To optimize billing times and therefore make the necessary adjustments (organizational, administrative, etc.);
To regularly check the amounts entered in account 418 to avoid omissions and errors;
To anticipate possible tax impacts, particularly in terms of VAT;
To keep accounting documents , invoices and supporting documents;
Use accounting software like Indy to automate and simplify 418 account management.
To learn more about Class 4 third-party accounts, discover the following accounts:Account 411 “Customers” ;
Account 413 “Customers – Accounts receivable” ;
Account 416 “Doubtful or disputed customers” ;
Account 419 “Credit customers” ;
Account 4191 “Customers – Advances and down payments received on orders” .
A question about the 418 account or the accounting balance sheet ? Leave us a comment in the space below, the Indy team will be happy to answer it!
