Here is my use case:
- According to the law, my tax liability is established on sales invoice or payment whichever comes first.
- There are customers who don’t pay invoices on time, some bad debtors pay after tax benefit period is over (3months)
- Even worse, some debtors don’t pay at all.
Now, if we make the invoice, we end up raising the liability to pay taxes which will be an expense. Otherwise, if we do not raise the invoice, we end up losing entirely on receivables reporting and other collection-followup related reports.
I was hoping if there was a stage called “Pro Forma” which shows up in reports but does not fire GL entry. Is anyone else facing the same challenge or is there is anything I am forgetting.