My client (a VAT registered LTD company) has an order for a certain amount of supplies. He made some of the supply in Dec, Feb and March 2020 and the remainder is still to be supplied. He has not invoiced his customer for any of the supply yet and states that he will invoice once the full order is complete. I have indicated that we should do an income accrual in the accounts for these sales up to March 2020 but he does not want me to do that - mainly because he is the kind of client who wants things to not be complicated.
I do not know what the value of the supply is up to end of March but I guess it will be about £1,500. Currently annual sales are quite low so this would represent about 15% of annual sales.
Should I insist on posting an accrual for this and getting the information from him on the value of supplies made or would it be OK for the sales to be reported in 2021 accounts when the final invoice is issued.