Entering a Purchase Invoice
To enter a new Purchase Invoice, open the 'Purchase Invoices: Browse' window as described
here and click [New] in the Button Bar or use the ⌘-N keyboard shortcut. Alternatively, highlight a Purchase Invoice similar to the one you want to enter and click [Duplicate] on the Button Bar.
The 'Purchase Invoice: New' window is opened, empty if you clicked [New] or containing a duplicate of the highlighted Purchase Invoice. In the case of the duplicate, the Supplier Invoice Number will not be copied. Complete the Purchase Invoice record as described below, then save it using the [Save] button and close the window by clicking the close box. Then, close the browse window using the close box again.
- No.
- Paste Special
Select from another Number Series
- The number of the Invoice in your Purchase Ledger is provided automatically by Standard Accounts. The default is the first unused number in the first valid number sequence in the Number Series - Purchase Invoices setting. You may change this number, but not to one that has already been used.
- If you have not defined any number sequences in the Number Series - Purchase Invoices setting, the Purchase Invoice Number sequence will start at 1 and continue consecutively. If you want the sequence to start from another number, change the Purchase Invoice Number of a Purchase Invoice before saving it: Standard Accounts will then continue the sequence from there.
- Name
- The Supplier's Name will be brought in when you have enter the Supplier Number in the field described immediately below.
- Supplier
- Paste Special
Suppliers in Contact register
- Enter the Supplier Number or use the 'Paste Special' function. When you press Return, the Supplier's name and other information will be entered into the appropriate fields.
- Invoice Date
- Paste Special
Choose date
- The date when the Supplier issued the Invoice. This date, together with the Payment Terms, will determine when the Invoice will become due for payment. The date of the previous Purchase Invoice entered is used as a default.
- Reference
- Record here any additional code associated with the Purchase Invoice. When you pay the Purchase Invoice, this Reference will be printed on the document provided you have included the "Our Reference" field in your Form design.
- OK
- When you check this box and save the record by clicking [Save], the Purchase Invoice will be approved and posted to your Purchase Ledger. A corresponding Transaction will also be created in the Nominal Ledger. Because of these consequences, you will no longer be able to make changes to the Purchase Invoice except to the Due Date and Supplier Inv. No. fields.
- References in these web pages to approved Purchase Invoices are to Purchase Invoices whose OK check box has been switched on (i.e. an approved Purchase Invoice is one that is no longer a Draft).
- Supplier Inv. No.
- The Supplier's invoice number.
- Pay. Terms
- Paste Special
Payment Terms setting, Sales Ledger/Purchase Ledger
- Default taken from Contact record for the Supplier (Purch. Pay Terms)
- Payment Terms entered here will be used to calculate the Due Date (below).
- Payment Terms are also the means by which Cash Notes and Credit Notes are distinguished from ordinary Invoices. Using 'Paste Special', select a Payment Term record of the "Cash" or "Credit Note" Type respectively. When you then approve and save the Invoice, the appropriate Nominal Ledger Transaction will be created. In the case of Cash Notes, this will credit the Cash Account (as specified in the Payment Term record) rather than the Creditor Account, while in the case of Credit Notes, the Transaction will be a reversal of the original Invoice Transaction.
- Cash Notes are immediately treated as paid and so will not appear in your creditor reports. There is no need to enter a Payment against them. If you need to reverse a Cash Note, use a negative Cash Note, not a Credit Note.
- When you select a Payment Term of the "Credit Note" type, enter the number of the Invoice to be credited in the Credit of Inv. field, using 'Paste Special' if necessary to bring up a list of open (unpaid) Invoices.
- Credit of Inv.
- Paste Special
Unpaid Purchase Invoices
- If you are entering a Purchase Credit Note, enter here the number of the Purchase Invoice being credited. The Purchase Invoice being credited cannot itself be a Purchase Credit Note.
- Remember to specify a Payment Term of Type "Credit Note" in the Payment Terms field: you must leave the Credit of Inv. field blank when the Payment Term is of any other Type.
- TOTAL
- The total amount to pay for this Invoice, including any taxes. Before you can save the Purchase Invoice, this figure must equal the sum of the Amounts of the rows plus VAT.
- Trans. Date
- Paste Special
Choose date
- This date will be used as the Transaction Date in the Nominal Ledger Transaction that will result from the Purchase Invoice. You may thus separate Invoice and Transaction Dates in your ledgers.
! | If you enter different Invoice and Transaction Dates, there will be a timing difference between Purchase Ledger and the Nominal Ledger so long as the Invoice remains unpaid. This will be apparent when comparing the Purchase Ledger report with the Creditor Control Account. |
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- Bank Account
- Default taken from
Contact record for the Supplier
- The Supplier's bank account number is brought in from the 'Account' card of the Contact record for the Supplier.
- VAT
- As you add rows to a Purchase Invoice, the Calculated VAT field in the footer will be updated with the total VAT value, calculated using the Amounts and VAT Codes in each row.
- If the total VAT amount on the Supplier's Invoice is different to the figure the Calculated VAT field, enter that amount here.
- This serves two purposes. First, as mentioned in the description of the TOTAL field above, you will only be able to save the Purchase Invoice if the TOTAL is the same as the sum of the Amounts of the rows plus VAT. The VAT figure in this equation will be the figure in this field or, if this field is empty, in the Calculated VAT field. Second, the total figure posted to the VAT Input Account(s) will be the figure in this field or, if this field is empty, in the Calculated VAT field.
- Due Date
- The date when the Purchase Invoice is to be paid, calculated by Standard Accounts using the Invoice Date and the Payment Term. You can change the Due Date, even after you have approved the Invoice. This will be useful if you agree a new Due Date for the Invoice with the Supplier and you need to re-schedule it in your Purchase Ledger.
- Sort Code
- Default taken from
Contact record for the Supplier
- The sort code of the Supplier's bank is brought in from the 'Account' card of the Contact record for the Supplier.
The remainder of the Purchase Invoice screen contains a grid that you should use to list the Purchase Invoice Items and Costs. To add rows to a Purchase Invoice, click in any field in the first blank row and enter appropriate text. To remove a row, click on the row number on the left of the row and press the Backspace key. To insert a row, click on the row number where the insertion is to be made and press Return.
- Account
- Paste Special
Account register, Nominal Ledger
- Specify the Cost Account to be debited by the Purchase Invoice. Enter an Account number and press Enter. The Account name will be entered automatically to the Description field.
- If the Contact record for the Supplier has a Cost Account specified on the 'Account' card, this will be entered as a default in the first row.
- Description
- Default taken from
Account
- The Account Name will be entered here automatically when you specify the Account above. You can change the Description if necessary.
- Amount
- The amount to be debited to the Cost Account.
- A convenient way of quickly entering the correct value is to move the insertion point into the field and then to press the Enter or Return key. Standard Accounts will enter the correct value to balance the Purchase Invoice, taking the TOTAL and any previous rows into account.
- V-Cd
- Paste Special
VAT Codes setting, Nominal Ledger
- This VAT Code will determine the rate at which VAT will be charged and the Input VAT Account to be debited.
- The default offered in each row will be chosen as follows:
- The Purch. VAT Code for the Supplier will be used.
- It will be taken from the Account record.
- The VAT Code in the Account Usage P/L setting will be used.
You can change this default in a particular Invoice row if necessary.
Footer
- Calculated VAT
- The VAT sum, calculated from the Purchase Invoice rows. This figure is calculated automatically as you add rows to the Purchase Invoice.
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In this chapter:
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Introduction to Purchase Invoices in Standard Accounts
