UK Prepayments query for yr end accounts


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hello !
quick query, IF anybody can advise please

yr end date is 31 March

Back in march, Received a creditor invoice dated 31 March 22 but it related to 22/23 , so the invoice was still entered into our accounts system as 31 March as that was the invoice date . However I then included it in my prepayments analysis, which basically took the cost out of 21/22 and was recently writtenback to put it into 22/23 accounts . The invoice itself was physically paid in April.

Is this right ? I thought it was as invoice dated march 22 but relates to the following year 22/23 so needs to go into 22/23 costs , regardless of when it is actually paid ?
It is now being queried about being a prepayment, hence my question.

thank you !
jay
 
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Truemanbrown

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You are correct. You are using the matching principle matching costs against income.

One example would be where you receive an invoice for rent on 31st March 2022 (your year end) but relates to the period 1st April 2022 to 30th June 2022. At 31st March 2022 you would provide for a prepayment on this rent and, in effect, please into the following accounting period.
 
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You are correct. You are using the matching principle matching costs against income.

One example would be where you receive an invoice for rent on 31st March 2022 (your year end) but relates to the period 1st April 2022 to 30th June 2022. At 31st March 2022 you would provide for a prepayment on this rent and, in effect, please into the following accounting period.
The auditors have said it is wrong as it was paid in April (22/23 year) ? I thought the actual payment date was irrelevant ? They say it should not have been in my year end prepayments ?
 

Truemanbrown

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The auditors have said it is wrong as it was paid in April (22/23 year) ? I thought the actual payment date was irrelevant ? They say it should not have been in my year end prepayments ?
What is the actual date of the invoice. Presumably you posted the invoice into the system using the invoice date.
 
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Invoice date 31 March , received early April , relating to 22/23 .
So I posted it into system as 31 March .
Then it was taken back out when I did my prepayment entries and out into 22/23 when I did my write backs later .
Personally think auditors are wrong , they say because it wasn’t paid by 31 March it can’t be a prepayment so therefore is an error.
He actually said next time just put the invoice into April
 

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