Renaming purchases accounts

PURCHASES ACCOUNTS REPRESENT PURCHASES FOR RESALE ONLY AND SHOULD ONLY BE USED TO RECORD PURCHASE TRANSACTIONS WHICH ARE DIRECT COSTS OF SALES.

It is important to note that these purchase accounts relate to purchases for resale ONLY i.e a direct cost (direct component) or input cost of the end sale, e.g. the purchase of Computer monitors by a Computer sales shop would be regarded as a purchase for resale. 

These accounts must only be used for such items to ensure the correct classification of purchases for period end accounting in order to determine the cost of sales and Gross Profit figures.  Any other purchases, e.g. kettle for the staff canteen, should be posted to the relevant expense account, e.g. Staff Canteen Expense, this is an overhead cost.

 

To facilitate customisation, these pre-set purchase for resale accounts are available to rename in order to specify the businesses direct costs linked to its sales activities or to group specific purchases for resale together.

There are a number of purchases for resale accounts already set up which cannot be added to or taken away from, however you may show or hide any of the accounts from view to prevent use (see 'Adding Nominal Accounts')

These include the following accounts:

  • Carriage Inwards
  • Carriage Outwards
  • Outlay
  • Manufacturing Wages / Salaries
  • Subcontractors
  • Manufacturing Power and Fuel
  • Manufacturing - Miscellaneous
  • Closing Stock / WIP (P&L)

 

SETUP >  SALES / PURCHASES NAMES

 
Fixed Name                                                                                             
 

Click on the Fixed Name of the purchases account which you wish to rename e.g. Purchases at Standard Rate. The fixed purchases accounts available to rename are:

 
  • Purchases accounts at standard rate (i.e. VAT at 23%)
  • Purchases accounts at low rate (i.e. VAT at 13.50%)
  • Purchases accounts at lower rate (i.e. VAT at 9%)
  • Purchases accounts at zero rate (i.e. VAT at zero)
  • Purchase account VAT exempt (i.e. VAT non applicable)
 
ONCE RENAMED THE VAT RATE THAT IS LINKED TO THE ORIGINAL ACCOUNT WILL AUTOMATICALLY REMAIN LINKED TO THAT ACCOUNT.
 
 
 
Enter Preferred Name here

 

Within this box type the preferred name of the purchases for resale account that will suit your particular purchases e.g. Purchase of Computer Monitors for Resale

Choose the 'Purchases account at Standard Rate' account and rename to 'Purchase of Computer Monitors'.  Each time a purchase invoice is received for the purchase of computer monitors from a Supplier it should be entered against this purchase account,  a VAT rate of 23% will attach. The account will now show under the user determined preferred name on the accounts and all reports.

  
Update
 
Click on Update to save the new preferred name
 

 

Once a purchases account has been renamed it will automatically appear within the nominal accounts available for selection within the purchases and cheque payments transaction screens.

When using these accounts within the transaction screens the VAT is automatically processed at the corresponding VAT rate attached to the account, i.e Purchases at standard rate will automatically attach a VAT rate of 23% to the transaction. The VAT rate attached cannot be amended.

Need help? Support is available at 01 8352074 or support@thesaurus.ie.

GeneralBureau Users OnlyCompany SetupCustomersSuppliersProductsOpening BalancesCustomising for your useSales EntrySales Invoice PrintingCustomer StatementsReceipts EntrySales Related ReportsBad DebtsPurchases EntryPayments EntryPurchases Related ReportsSupplier Remittance AdviceBank TransfersReconciling Bank AccountsCorrections and DeletingVAT ReturnsDirectors TransactionsSubcontractorsPrincipal ContractorsFixed AssetsReportsPetty Cash TransactionsLease RepaymentsHire Purchase RepaymentsDirectors Salary / RemunerationThesaurus Payroll JournalThird Party Payments / Form 46GJournal EntryAudit FileAccounts ProductionStock ControlArchive TransactionsBacking up your Company FilesRestoring a Back UpCSV ImportSchools Version