17 July 2010
service provider is provide services to foreigner and service receiver make payment after 30 days if service provider follow cash system then on what days he pass the entry e.g date of bill is 31st march actual receipts is 30th April so i can billing on 30th April or 30th march as per our institute of chartered accountants
17 July 2010
My view is Billing is done when the services are rendered. Billing is not concerned with the date of payment. Infact, if the payment term is 30 days, then it itself is linked to billing date i.e. 30 days from the date of billing. If billing is not done, then how the payment date can be determined.
So, in my view, Invoice date should be 31st March.
24 July 2010
Cash System of accounting says that cost & expenses to be booked as and when payment received. Accrual system of accounting says that cost and revenues should be matched, it means that the cost incurred in earning the recorded revenue should be matched.
So, for invoicing, in both the cases the treatment is same. Cash system has it applicability to cost and expenses. It is not concerned with the recording of revenue or sales, which needs to be done according to the accounting principles.
Think , in case, if we record the sales on the date of payment, then in cash system there would not be any debtors, and suppose if no payment received then no sales and so no bad debts etc.....
I hope, it satisfies you with my answer. In case not, you can have other experts opinion too...... Regards
CAclubindia
