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This text refers to program version 4.0  

Transactions in Hansa - Purchase Invoices

A Purchase Invoices is a demand for your company to make a payment. It will usually be recorded in the Purchase Ledger, which is used 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, a Purchase Account will be debited and, in most cases, the VAT Account will also be debited. Defaults for the Accounts affected are taken from the Account Usage P/L setting, and they are selected according to the priority rules described below.

Purchase Account
The Purchase Accounts in the Nominal Ledger are used to record the levels of purchases of different types of Items. To determine which Account is to be used, when entering Purchase Invoices, a Purchase Account should be typed in to each row (in the column marked 'A/C'). Different rows can have different Purchase Accounts.

When adding rows to a Purchase Invoice, Hansa can in some instances offer a default Purchase Account in the A/C field, taken from the Cost Account specified on the 'Accounts' card of the Supplier record. You might specify such a default for Suppliers of services (such as electricity or telephone services), whose Purchase Invoices are always posted to the same Account.

When Purchase Invoices are created from Purchase Orders, the Purchase Account for 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 in the following manner:

Consolidate Items to Supplier Cost Account

The ordered Items are grouped together on a single row on the Invoice indicating that they are to be posted to the same Cost Account (taken from the Cost Account on the 'Accounts' card of the Supplier record). If the Items on the Purchase Order have different VAT Codes, there will be a separate row on the Invoice for each VAT Code.

Consolidate by Items and Project

The Purchase Invoice will feature a separate row for each received Item/Project combination on the Purchase Order. The Cost Accounts will be the Purchase Control Account for the Item Groups to which the Items belong (if the Use Item Groups for Cost Accounts option in the Cost Accounting setting in the Stock module is in use) or that on card 5 of the Account Usage S/L setting.

Transfer Each Row Separately

Each ordered Item will have its own row on the Invoice. The Cost Accounts will be the Cost Account on flip B of the Purchase Order, the Purchase Control Account for the Item Groups to which the Items belong (if the Use Item Groups for Cost Accounts option in the Cost Accounting setting in the Stock module is in use) or that on card 5 of the Account Usage S/L setting.

VAT Account
When entering Purchase Invoices, a VAT Code must be specified for each row. This code refers to a specific VAT Code record, which controls which VAT Account will be used by the subsequent Nominal Ledger Transaction (and also the rate at which VAT will be charged). VAT Code records are set up using the VAT Codes setting in the Nominal Ledger.

When entering Purchase Invoice rows, the VAT Code field (marked 'V-Cd') may not be left blank. The default is placed in this field as follows:

1. Hansa uses the VAT Code specified in the Supplier register. If this is blank:
   

2. Hansa uses the VAT Code specified for the Account. If this is blank:
   

3. The VAT Code specified in the Account Usage P/L setting is used.

Although VAT Codes can be specified 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.

If the selected VAT Code is missing from the VAT Codes setting, Hansa will display the error message: "Code not registered".

Creditor Control Account
When generating a Nominal Ledger Transaction from a Purchase Invoice, the Creditor Account is determined as follows:

1. Hansa uses the Creditor Account specified in the Supplier record. If this is blank:
   

2. A Creditor Account can be specified for the Supplier Category to which the Supplier belongs. If this is blank, or if no Supplier Category has been specified:
   

3. Hansa will use the default Creditor (or, if the Invoice is a cash Invoice, the Cash) Account entered in the Account Usage P/L setting.
   

4. If the Supplier is marked as an "On Account" Supplier and the Invoice has been allocated to an "On Account" Payment, the On Account A/C for the Supplier, the Supplier Category or that entered on card 2 of the Account Usage P/L setting (in order of priority) will be used.
   

5. If the Prel. Book check box on the Purchase Invoice is switched on, a preliminary creditors account will be used, taken from the Account Usage P/L setting. When the Purchase Invoice is finally approved, this preliminary transaction will be replaced with a final transaction, using the correct Creditor Account determined as above.

Note: the Creditor Account selected following steps 1-3 above is displayed on the ('Other' card of the Purchase Invoice, where it can be replaced with an ad hoc Account if necessary.

If any of the selected Accounts is missing from the Chart of Accounts, Hansa will display the error message: "Creditor Account missing. Check Account Usage P/L" or, if step 5 above applies, "Preliminary Account not found, check Account Usage P/L".

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