What Is a Sundry Invoice?
Sundry invoices are sent a company’s customers who rarely make a purchase on credit and the amount of their purchases are not significant. Sundry means various, miscellaneous, or diverse.
The term sundry comes from when bookkeeping was more of a manual task. Bookkeepers had to handle the books by hand and had to add a page to the company’s ledger for every new customer. If a page was added in for every customer, even occasional customers with small transactions, the books would become cumbersome. So, bookkeepers added one page called sundry which those customers can be recorded.
The need for sundry invoicing has been greatly reduced in the age of accounting software.
This article will also discuss:
What Does Sundry Mean in Accounting?
Income generated from sources other than a company’s normal business operations is called Sundry Income. This income is not generated by the sales of the company’s products and services and less predictable than the revenue from the business’s primary operations because it is associated with irregular activities that can’t be guaranteed sources of income over the long term.
Even though sundry income can be quite trivial compared to income generated from normal business activities, this does not mean the amounts are negligible. The defining characteristics of a sundry income are the irregularity of the revenue, not the amount generated, so there’s no limit to the amount that can qualify as sundry income.
On a balance sheet or income statement, sundry income might be listed as miscellaneous income or operating income. This income must be recorded on financial statements as it has an effect on a business’s net worth and needs to be reported to shareholders.
Sundry income also needs to be reported to the Internal Revenue Service (IRS) along with income generated from normal business operations.
Sundry income can come from various sources that can change from accounting period to next. Examples of sundry income sources include:
- Late fees
- Profits on the sales of minor assets
- Gains from foreign exchange
Sundry accounting also encompasses the irregular small expenses that are not otherwise assigned with an account. The sources of sundry expenses might vary from one business to another but it generally does not include operating expenses such as rent or mortgage payments, depreciation, employee pay and benefits or utility payments.