Select Invoice or Credit Note as appropriate. Once selected the program will automatically post the transaction in the appropriate manner.
This will be the sales invoice number, these numbers should work sequentially, once entered the system will automatically generate the next number on the next sales batch entry / invoice production option. If you are entering invoices using all invoice entry screens this reference field is linked to all sales transaction screens and will run sequentially no matter which sales entry screen you use.
Date of sale
Select a Customer name from the drop down list of Customers to whom the sale relates.
Setting up New Customer during transaction entry
If the sale is to a new Customer which does not already exist within the Customer listing then, without closing the invoice production entry screen, from the main menu, select Sales> Add/Amend Customer> and setup the new Customer.
Select the relevant sales nominal account to which the sale relates:
Type the appropriate narrative to appear on the invoice related to this line of entry e.g. brief description with batch number/purchase order number.
There is the option to add two more lines of entry to the invoice at varying VAT rates. There is no restriction to the mix of VAT used, i.e 3 lines of entry all at standard rate or one line at standard rate one line at low rate etc.
Once printed the invoice will detail each line of entry will the attached narrative detailing the VAT rate and VAT amount per line of entry.
An example of an entry posted from the above transaction is :
The profit and loss account (P&L) records the actual income generated by the company on this particular sale, therefore the P&L can only ever reflect a particular sale once as the income generated on this sale is only generated once.
The Balance Sheet (B/S) records amounts payable/receivable and amounts paid/received. In posting a sales invoice the amount of the invoice is recorded as a receivable so is therefore automatically posted to the “Trade Debtors” account which represents amounts receivable from Customers.
In the above transaction the invoice relates to a two part sale. The initial part of the entry will result in the Net Amount (excluding VAT, 100.00) credited to the “Sales at Standard Rate” account in the P&L.
As the business is VAT registered the business must pay the VAT element of the invoice to the Revenue therefore they are not actually gaining the full income (Gross amount) of the invoice only the amount excluding VAT (Net Amount). Therefore the Net amount (excl VAT) is posted as the actual P&L income and the VAT element is posted to the VAT account (B/S) as a credit meaning it is payable to the Revenue. The total Gross amount (incl VAT) is receivable from the Customer so this amount is posted to the Trade Debtors account as a debit as it is receivable.
The secondary part of the transaction will have the same results attaching the lower rate in place of the standard rate. The Net Amount (excluding VAT, 50.00) will be credited to the “Sales at Lower Rate” account in the P&L. The VAT element will be posted to the VAT account as a payable to Revenue.
The Gross amount (incl VAT) is receivable from the Customer so this amount is posted to the Trade Creditors account as a debit as it is a receivable.
N.B. Accounting works on a double entry basis and must always balance
P&L Expense Debit +
B/S Payable/Paid Credit -
P&L Income Credit -
B/S Receivable/Received Debit +
AN INVOICE IS NOW AVAILABLE TO PRINT FROM THE INVOICE PRINTING MENU UNDER THE SALES> INVOICE PRODUCTION> MENU.
ALTERNATIVELY SIMPLY SELECT "PRINT" TO BRING YOU STRAIGHT THE INVOICE PRINTING MENU.
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