Account Usage S/L
In this setting you will determine the default Accounts and VAT Codes for use by your Sales Ledger transactions (i.e. Invoices and Receipts). These defaults will be used in the absence of Accounts or VAT Codes being specified elsewhere (for example, for the Items or Customers used in the transactions). Please click for complete description of how FirstOffice selects these defaults in
Invoices and
Receipts.
If you have imported the sample Chart of Accounts supplied with FirstOffice, you will find that most of the fields in the Account Usage S/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.
! | The Account numbers in this setting must also be in the Chart of Accounts. Otherwise, FirstOffice will not verify and accept the transactions controlled by this setting. You must either add the Accounts to the Chart of Accounts (i.e. the Accounts setting), or change the Account numbers in this setting to Accounts that do exist in the Chart of Accounts. |
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To open this setting, click [Settings] in the Master Control panel or select 'Settings' from the File menu, and then double-click 'Account Usage S/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.
- Debtors
- Paste Special
Accounts setting
- When you approve an Invoice (i.e. post it to the Nominal Ledger), its value including VAT will be debited to a Debtor Account. When you enter a Receipt, its value will be credited to the same Account. This Account therefore shows how much your company is owed at a particular time.
- Enter here the Account Code of the Account that you wish to be used as your Debtor Account.
- Round Off
- Paste Special
Accounts setting
- The total and VAT amounts of each Invoice will be rounded off according to rules set in the Round Off setting. Whenever you approve an Invoice, any amount lost or gained by this rounding process will be posted to the Account whose Code has been entered here.
- This Account can only be defined in the Account Usage S/L setting and is therefore used in Transactions generated from Purchase Invoices as well.
- Write Off
- Paste Special
Accounts setting
- The Account specified here will be debited by bad debts written off by the 'New Write-off' Operations menu function on the Receipt screen.
- Base Currency Round Off
- Paste Special
Accounts setting
- This Account is not used in FirstOffice, but you must specify a valid Account before you can save the Account Usage S/L setting.
- On Account A/C
- Paste Special
Accounts setting
- If you receive On Account Receipts from a particular Customer without reference to a specific Invoice (usually before you have raised the Invoice), you may want to use a special Account for such Receipts. Specify that Account here, and switch on the On Account check box on the 'Terms' card of the Customer in question. When you enter and approve an On Account Receipt, its value will be credited to this Account.
- Bank Fee
- Paste Special
Accounts setting
- Enter here the Account Code of the Account to be credited by any bank charges that you may incur when banking Receipts.
- Dom. Sales A/C, EU Sales A/C, Export Sales A/C
- Paste Special
Accounts setting
- When an Invoice is approved, the values excluding VAT of the Items are individually credited to a Sales Account.
- It can be useful to maintain more than one Sales Account to keep a record of the sales of different types of product. For this reason, you can specify a separate Sales Account for each Item. Enter here the Account Code of the Account that you wish to be used as your default Sales Account, to be credited whenever you sell an Item that does not have its own Sales Account (and if you use a Price that does not have a Sales Account).
- You should define three default Sales Accounts should be set: which one will be used in a particular Invoice will depend on the Zone of the Customer concerned (set on the 'Account' card of the Customer record). If you leave the EU and Export Sales Accounts empty, the Domestic Sales Account will be used for all sales, irrespective of Zone.
- Cash
- Paste Special
Accounts setting
- The Account entered here will be debited instead of the Debtor Account whenever you approve a cash sale (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.
- 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 an 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 Item. Enter here the VAT Code that you wish to be used as a default, to be used whenever you sell an Item that does not have its own VAT Code. Normally, if your company is 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 Invoice will depend on the Zone of the Customer concerned (set on the 'Account' card of the Customer record).
- Note that, for Customers in the "Inside EU" and "Outside EU" Zones, VAT will not be charged on any Invoices raised, irrespective of the VAT Code specified here. If you want to charge VAT to such Customers, place them in the Inside EU (Post VAT)" and "Outside EU (Post VAT)" Zones.
- Post Receipt VAT
- This option allows you to account for VAT based on Receipts (rather than Invoices) and On Account Receipts. An On Account Receipt is a Receipt with no Invoice Number. If you need to use this option, you should enter O/P Accounts for all your VAT Codes (in the VAT Codes setting).
- The accounting of VAT based on Receipts is a requirement in the UK for users of the Cash VAT scheme. If you are using the UK Cash VAT scheme, you should also ensure the equivalent option in the Account Usage P/L setting is switched on. 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 Payment VAT option in the Purchase Ledger.
- Users in Latvia should leave this option switched off but should turn on the Post Payment VAT option in the Account Usage P/L setting.
- This option cannot be used in Russia.
- Base Price
- Use these options to specify whether the sales Prices in the Item records are to include VAT. VAT rates are defined in the VAT Codes setting.
