Canada Payment made in January for a work done in December

[annddrew]

Hi,
Prior to 2021, I was doing manual bookkeeping using Excel. But starting January 1st, 2021 I decided to use QuickBooks online and so I imported all my bank transactions starting January 1st, 2021. In the latter transactions appears a transaction of a payment made on January 15th, 2021 but for work done in December 2020. How am I going to deal with this particular transaction? Should I delete it somehow? Should I place it in some other account? If yes which one? I'm trying to set up QuickBooks online for the first time starting January 1st, 2021.

Thank you for your help

 

[onebadasset]

I am not to familiar with how quick books works when you originally setup an account for the first time. Does it allow you to post invoices in a prior period. In any other situation, you would record the entry at the date that the sale or service took place.

Dec
Dr A/R
CR Revenue

Jan (Money rcvd)
Dr Cash
Cr A/R

 

[annddrew]

I am not to familiar with how quick books works when you originally setup an account for the first time. Does it allow you to post invoices in a prior period. In any other situation, you would record the entry at the date that the sale or service took place.

Dec
Dr A/R
CR Revenue

Jan (Money rcvd)
Dr Cash
Cr A/R

So should I start on January 1st 2021 with an initial position as:
Dr A/R

and on January 15th 2021 when the payment is received as:
Dr Cash
Cr A/R

?

 

[onebadasset]

Based on your response from the other thread, yes that would be correct.

The revenue/Net income would then be rolled into RE at year end. So if you had no other transactions or items, your opening balance would be Dr A/R Cr RE

 

[annddrew]

Thank you very much @onebadasset for your help. I really appreciate it.