Search HansaManuals.com HansaManuals Home >> Standard ERP >> Accounting Principles >> Transaction Records Previous Next Entire Chapter in Printable Form Search This text refers to program version 8.0 Transactions in Standard ERP - Purchase Invoices Purchase Invoices are demands for your company to make payments. You will usually record them in the Purchase Ledger, which you will use to monitor these invoices and to record payments against them. The Purchase Ledger allows you to find out how much money you owe to your creditors, and you can use it to make a forecast of future payments.Most transactions in the Purchase Ledger mirror similar transactions in the Sales Ledger. Therefore, as with a Sales Invoice, a Nominal Ledger Transaction created from a Purchase Invoice will normally affect three Accounts: the Creditor Account will be credited, one or more Purchase Accounts will be debited and, in most cases, the VAT Account will also be debited. Defaults for the Accounts affected will be selected using the priority rules described below. Purchase/Cost AccountPurchase Accounts (also known as Cost Accounts) record the levels of purchases of different types of Items. When you enter a Purchase Invoice, you should enter a Purchase Account in each row (in the column marked 'A/C'). Different rows can have different Purchase Accounts.In some instances a default Purchase Account will be placed in the A/C field in the first row of a Purchase Invoice. This default will if you have specified a Cost Account on the 'Accounts' card of the Contact record for the Supplier. You might specify such a default for Suppliers of services (such as electricity or telephone services), whose Purchase Invoices will always be posted to the same Account. When you create Purchase Invoices from Purchase Orders and Goods Receipts, the Purchase Account in each row will depend on the set of Purchase Order Item Transfer Control options in the Purchase Invoice Settings setting in the Purchase Ledger. These options operate as follows:
VAT AccountWhen you enter a Purchase Invoice, you must specify a VAT Code in each row. This code refers to a specific VAT Code record, which will determine the Input VAT Account in the subsequent Nominal Ledger Transaction and the rate at which VAT will be charged. Before entering Purchase Invoices, you should have entered the VAT Code records that you will need in the VAT Codes setting in the Nominal Ledger.When you enter Purchase Invoice rows, you cannot leave the VAT Code field (marked 'V-Cd') blank. A default will be placed in this field, chosen as follows:
Although you can specify VAT Codes for both Suppliers and Accounts (as described in points 1 and 2 above), it is important you do not mix these methods of setting default VAT Accounts. You should only specify a VAT Code for a Supplier if for some reason the standard VAT rates will not apply to them. If the selected VAT Code is missing from the VAT Codes setting, you will be given the message "Code not registered" when you try to save the Purchase Invoice. As shown in the illustration above, the VAT Code will be copied to the Transaction row debiting the Purchase/Cost Account. If you would like it to be copied to the Transaction row debiting the Input VAT Account as well, use the Add VAT Code to VAT A/C rows option in the Transaction Settings setting in the Nominal Ledger. In some countries, Tax Templates are used instead of VAT Codes. VAT Codes should be used where each sales and purchase transaction is taxed at a single rate, while Tax Templates should be used where different taxes and/or several tax rates are applied to one transaction. If you need to use Tax Templates, you should first select the Use Tax Templates for Tax Calculation option in the Transaction Settings setting. This will cause a Tax Template field (marked "T-Cd") to replace the VAT Code field in the Purchase Invoice record. A Tax Template will contain at least one VAT Code which will supply the Input VAT Account(s). Creditor Control AccountWhen you specify the Supplier in a Purchase Invoice, a Creditor Account will be chosen and shown on the 'Comment' card. You can overwrite this default if necessary. This Account will be chosen as follows:
If an Invoice is a cash Invoice, it will credit a Cash Account instead of a Creditor Account. A cash Invoice is one with a "Cash" type Payment Term. The Cash Account will be chosen as follows:
This chapter describes the more common transactions as follows:
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