Australia Invoice received, service incurred and payment in different financial years

[Alice]

Hello there,

With my business with are participating at a trade show next year in July (next financial year).

I received the invoice yesterday (current financial year) which I will pay in 3 instalments: 2 in the current financial year and 1 in the next.

How should my journal entries be?

Thank you in advance!

Alice

 

[Steve-LevelUp]

I would record as follows
Split the invoice into two. If the invoice is for $1200
Invoice #123-A - $800 - book to Pre-Paid (current date)
Invoice #123-B - $400 - book to pre-paid (at as of the start of the next period)

Once in pre-paid, you will pull it out of pre-paid as of the event date.

So, the entry would be
Today
Prepaid $800
AP $800


Jan 1
Prepaid $400
AP 800

Event
Expense $1200
Prepaid $1200