Account Usage P/L
In this setting you will determine which Accounts are to be used as defaults by your Purchase Ledger transactions (i.e. Purchase Invoices and Payments). These defaults will be used in the absence of Accounts or VAT Codes being specified elsewhere (for example, for the Items or Suppliers used in the transactions). Please click for complete description of how FirstOffice selects these defaults in
Purchase Invoices and
Payments. Account numbers used here must be defined in the
Accounts setting, otherwise FirstOffice will not be able to create transactions.
If you have imported the sample Chart of Accounts supplied with FirstOffice, you will find that most of the fields in the Account Usage P/L setting contain suggested values. If you have modified this Chart of Accounts or have used your own, you must ensure that these values are replaced with the correct Accounts.
To open this setting, click [Settings] in the Master Control panel or select 'Settings' from the File menu, and then double-click 'Account Usage P/L' in the 'Settings' list. Fill in the fields as described below. Then, to save changes and close the window, click the [Save] button. To close the window without saving changes, click the close box.
- Creditors
- Paste Special
Accounts setting
- When you approve a Purchase Invoice is approved (i.e. post it to the Nominal Ledger), its value including VAT will be credited to a Creditor Account. When you enter a Payment, its value will be debited to the same Account. This Account therefore shows how much your company owes at a particular time.
- Enter here the Account Code of the Account that you wish to be used as your Creditor Account. It will be overridden if a separate such Account has been specified for the Supplier or its Supplier Category.
- Bank Fee
- Paste Special
Accounts setting
- Enter here the Account Code of the Account to be debited by any bank changes you may incur when issuing Payments.
- Cash
- Paste Special
Accounts setting
- The Account entered here will be credited instead of the Creditor Account whenever you approve a cash purchase (Cash Note). Please refer to the description of the Payment Terms setting for details of Cash Notes.
- The Account specified here will be overridden if a separate such Account has been specified for the Payment Term used in the Cash Note.
- On Account A/C
- Paste Special
Accounts setting
- You can issue a Payment to a particular Supplier without reference to a specific Invoice (an "On Account" Payment). You may want to use a special account for such Payments. Specify that Account here, and switch on the On Account check box on the 'Terms' card of the Customer record for the Supplier in question. When you enter and approve an On Account Payment, its value will be debited to this Account.
- Dom. VAT Code, EU VAT Code, Export VAT Code
- Paste Special
VAT Codes setting
- VAT Codes determine the VAT Account that will be used when a Purchase Invoice is posted to the Nominal Ledger and the rate at which VAT will be charged. VAT Code records are set up using the VAT Codes setting.
- You can specify a separate VAT Code for each Account. Enter here the VAT Code that you wish to be used as a default, to be used whenever an Account that does not have its own VAT Code is used in a Purchase Invoice. Normally, if most of your company's Suppliers are registered for VAT, this will be the VAT Code representing the standard rate. Otherwise, it will be a zero rate VAT Code.
- You should define three default VAT Codes: which one will be used in a particular Purchase Invoice will depend on the Zone of the Suppler concerned (set on the 'Account' card of the Customer record for the Supplier).
- Post Payment VAT
- This option allows you to post VAT from Payments and On Account Payments. An On Account Payment is a Payment with no Purchase Invoice Number. This is a requirement in Latvia and for users of the Cash VAT scheme in the UK. If you need to use this option, you should enter I/P Accounts for all your VAT Codes (in the VAT Codes setting).
- UK Cash VAT users only should also switch on the Post Receipt VAT option in the Account Usage S/L setting and specify O/P Accounts for all VAT Codes. Please refer to the description of the VAT Codes setting for details of the Cash VAT scheme.
- Users in Poland can also use this option and the Post Receipt VAT option in the Sales Ledger.
