As a professional, you owe it to yourself to be rigorous in your accounting management, because the slightest error in your bookkeeping can have serious consequences, including an impact on your sales. Together, we'll take a closer look at the concept of an invoice that hasn't been received, also known as an invoice to be received, and what you need to do to ensure it's handled without a hitch! ✅
What is an NPF? 🤨
An invoice that has not been received occurs when a good has been delivered or a service has been performed after the close of the accounting period, i.e. the invoice has not been provided by the date on which the supplier closes the accounts.
📌 F or example: You placed an order for materials for an upcoming job at the beginning of December, and the order was delivered on the 29th. The accounting year ends on December 31, so if you still haven't received the invoice by January 1 of the following year, a non-received invoice will be generated.
💡 Please note: There is also the opposite notion of an invoice not having been received, namely prepaid expenses. In this case, the invoice was received before the end of the accounting period, but the goods or services will not be delivered until afterwards. In this case, the expense is charged to the next accounting period, whereas in the case of an invoice that has not been received, the expense must be booked in the accounting period that is ending!
How do you account for them in the year to be closed? 🧮
As explained in the previous point, invoices that have not been received cannot be carried forward to the following financial year. It is essential that the corresponding expense is entered in the balance sheet at the time of closing.
Here's how to proceed (now we get into the technical part 🤓 ):
- Your expense account (class 6) should be debited for the amount of the invoice excluding VAT, as well as account 44586 "VAT to be adjusted" if you are entitled to reclaim VAT on the purchase of the goods or services in question.
- Account 408 "Suppliers - Invoices not received" is credited with the amount including VAT.
What is the impact of NPF in the following year? 🔍
When a new accounting period is opened, invoices not yet received are reversed, i.e. accounts initially debited are credited, and vice versa.
Finally, when the supplier's invoice is received, it is normally posted and everything is back in order! (Finally! 😅)
In the balance sheet, invoices not yet received are classified as liabilities under "Accounts payable".
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