Institute of Certified Bookkeepers
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How to correctly handle deposits and progression claims.

  • Fellow in Practice
  • Practice Certificate
  • 2 posts
  • # 117683

My client is a cabinet maker.  He quotes the total amount of the job.  Customer pays the deposit.  Client turns quote into order.  Does not turn order into invoice until job is finished.  During this time, we declare the GST on the order format as he is on cash reporting.  When doing BAS, I journal the figures each month to balance up.  I am trying to get the balance sheet correct to reflect the outstanding GST as of each month.  I would like to know the correct way in handling it.  I like to reconcile the GST accounts with my GL and receivable with tax.  I can balance up the P & L with GST with the Customer Deposits.  I have only taken over the file in the last 4 months so want to get it correct.

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