Entering a Purchase Invoice - Costs Card
This page describes the fields on the 'Costs' card of the Purchase Invoice record. Please follow the links below for descriptions of the other cards:
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Use the grid on the 'Costs' card to list the items and costs on the Purchase Invoice. If you are using iOS or Android, tap the 'Items' tab at the top of the Purchase Invoice window to go to the 'Costs' card.
The grid is divided into five horizontal flips. When you click (Windows/Mac OS X) or tap (iOS/Android) on a flip tab (marked A-E), the two or three right-hand columns of the grid will be replaced.
If you are using Windows or Mac OS X, you can add rows to a Purchase Invoice by clicking in any field in the first blank row and entering appropriate text. To remove a row, click on the row number on the left of the row and press the Backspace key. To insert a row, click on the row number where the insertion is to be made and press Return.
If you are using iOS or Android, you can add rows by tapping the + button below the matrix. To remove a row, long tap on the row number on the left of the row and select 'Delete Row' from the resulting menu. To insert a row, long tap on the row number where the insertion is to be made and select 'Insert Row' from the resulting menu.
Flip A - A/C
- Paste Special
Account register, Nominal Ledger/System module
- Specify the Cost Account to be debited by the Purchase Invoice. Enter an Account number and press Enter. The Account name will be entered automatically in the Description field.
- If the Contact record for the Supplier has a Cost Account specified on the 'Accounts' card, this will be entered as a default in the first row.
- You can have an Account brought in by specifying an Account Short Code in the Short. field to the right.
- You can also enter the Code of an Autotransaction in this field. You can use Autotransactions to automate the entry of frequently-used Purchase Invoice Transactions, not only reducing labour but also ensuring the correct Accounts are used every time. Autotransactions are fully described here. An example of an Autotransaction might be one that distributes the cost of an overhead such as rent across several Objects on a percentage basis.
- Objects
- Paste Special
Object register, Nominal Ledger/System module
- You can assign up to 20 Objects, separated by commas, to a Purchase Invoice row, to be transferred to the consequent Nominal Ledger Transaction. You might define separate Objects to represent different departments, cost centres or product types. This provides a flexible method of analysis that can be used in Nominal Ledger reports. Usually the Objects specified here will represent the item or cost.
- In the Nominal Ledger Transaction generated from a Purchase Invoice, any Objects specified here will be assigned to the debit posting to the Cost Account. This assignment will merge these Objects with those of the parent Invoice (shown on the 'Terms' card).
- If you don't use Objects, you can use the Skips Object option in the Purchase Invoice Settings setting to have the insertion point skip over this field when you press Return or Enter.
- If you specify a Project on flip B and this Project has been given an Object, this Object will be copied here automatically. You can also have an Object brought in by specifying an Account Short Code in the field immediately to the right.
- Short.
- Paste Special
Account Short Codes setting, Nominal Ledger
- You can use Short Codes to help reduce errors when selecting Accounts and Objects. You can also use them if you do not want members of staff using Purchase Invoices and Expenses to have any access to the Account and Object registers (which means that they will not be able to use 'Paste Special' to choose Accounts and Objects). Enter a Short Code here to bring in the appropriate Account and Object(s).
- Description
- Default taken from
Account
- The Account Name will be entered here automatically when you specify the Account above. You can change the Description if necessary.
You can use the Skips Description option in the Purchase Invoice Settings setting to have the insertion point skip over this field when you press Return or Enter (but not Tab).
- If you have entered various translations of the Account Name on the 'Texts' card of the Account record, the correct translation will be brought in according to the Language of the Invoice (specified on the 'Comment' card). If there is no Language on the 'Comment' card but you have entered a Language in the Company Info setting in the System module and you are using the Account Description in Company Language option in the Transaction Settings setting in the Nominal Ledger, then the appropriate translation of the Account Name for the Company Info Language will be brought in.
- Amount
- The amount to be debited to the Cost Account. If you have specified a Currency, this figure should be in that Currency.
- A convenient way of quickly entering the correct value is to click, tap or otherwise move the insertion point into this field and then press the Enter or Return key. The correct value to balance the Invoice will be brought in, taking the TOTAL and any previous rows into account.
- V-Cd
- Paste Special
VAT Codes setting, Nominal Ledger
- The VAT Code entered here will determine the rate at which VAT will be charged and the Input VAT Account to be debited.
- The default offered in each row will be chosen as follows:
- The Purch. VAT Code field for the Supplierwill be used.
- It will be taken from the Account record.
- The VAT Code on the 'VAT' card of the Account Usage P/L setting will be used.
In the last case, the appropriate VAT Code for the Zone of the Supplier will be used.
- You can change this default in a particular Invoice row if necessary.
- In the Nominal Ledger Transaction generated from the Purchase Invoice, this VAT Code will be assigned to the debit posting to the Cost Account specified above. If you want it assigned to the debit posting to the Input VAT Account as well, use the Add VAT Code to VAT A/C rows option in the Transaction Settings setting in the Nominal Ledger.
- T-Cd
- Paste Special
Tax Templates setting, Nominal Ledger
- In some countries, Tax Templates are used instead of VAT Codes. VAT Codes should be used where each sales and purchase transaction (e.g. each row in a Purchase Invoice) is taxed at a single rate, while Tax Templates should be used where different taxes and/or several tax rates are applied to one transaction (e.g. to one row).
- If you need to use Tax Templates, you should first choose the Use Tax Templates for Tax Calculation option in the Transaction Settings setting in the Nominal Ledger. This option will cause a Tax Template field ("T-Cd") to appear here instead of the VAT Code field ("V-Cd"). Having done so and having entered your Tax Templates in the Tax Templates setting also in the Nominal Ledger, you should specify the Tax Templates that are to be used in each Purchase Invoice row here.
- The default offered in each row will be chosen as follows:
- The Purch. Tax Temp. for the Supplier will be used.
- It will be taken from the Account record.
- The Tax Template on the 'VAT' card of the Account Usage P/L setting will be used.
- If there is a Branch on the 'Comment' card of the Purchase Invoice, the Purch. Tax Temp. from the Contact record for that Branch will be used.
In the third case, the appropriate Tax Template for the Zone of the Supplier will be used.
Flip BIf you need to use the Intrastat reporting feature, you should ensure the Item and Quantity fields on flip B of each Purchase Invoice row are filled out correctly. The Intrastat P/L form lists the Items that have been purchased from Suppliers in other EU countries, taking this information from these fields. The Purchase Order Accruals report and the Accrued and Accrued by Nominal Code options of the Purchase Order Status report also require Items to be specified on flip B of each Purchase Invoice row. If you will be creating Purchase Invoices from Purchase Orders or Goods Receipts, you should choose the Consolidate by Items and Project or the Transfer Each Row Separately options in the Purchase Invoice Settings setting to ensure the fields on flip B of each Purchase Invoice row contain the necessary information. - Order Type
- This field will be filled automatically and can contain two values: "Normal" and "Drop Ship". It will contain "Drop Ship" in a Purchase Invoice row that was created from a Purchase Order row in which the Order Type was also "Drop Ship". A "Drop Ship" Purchase Order is a Purchase Order that you place with your Supplier, and the Supplier then delivers direct to your Customer so that you do not receive the Items into stock yourself. As there will therefore be no Goods Receipt, any Price Variance will be calculated differently when the Order Type is "Drop Ship" (the Price Variance is shown on flip D).
- Stock Type
- This field will be filled automatically and can contain two values: "Purchased" and "Consignment". It will contain "Consignment" in a Purchase Invoice row that was created from a Goods Receipt row in which the Stock Type was also "Consignment". An Item is in Consignment Stock when it is in your warehouse or showroom but still belongs to the Supplier until you sell it. If the Stock Type is "Consignment", it will change the choice of Cost Account on flip A.
- Item
- Paste Special
Item register
- You may enter the Item number of the purchased Item here.
- In the case of Purchase Invoices created from Purchase Orders or Goods Receipts, Item Numbers will be copied if you are using the Consolidate by Items and Project or the Transfer Each Row Separately options in the Purchase Invoice Settings setting.
As well as the 'Paste Special' feature, you can use the 'Item Search' function on the Operations menu to add Items to the Purchase Invoice.
- Qty
- Enter the quantity purchased here.
- In the case of Purchase Invoices created from Purchase Orders or Goods Receipts, Quantities will be copied over if you are using the Consolidate by Items and Project or the Transfer Each Row Separately options in the Purchase Invoice Settings setting.
- Project
- Paste Special
Project register, Job Costing module (if installed)
- If you are using the Job Costing module, you can enter a Project Number here if you need to connect the expense represented by a Purchase Invoice row to a Project.
- If the Project has been given an Object, this will be copied to the Objects field on flip A of the Purchase Invoice.
- If you enter a Project, you must also enter an Item and Quantity.
- In the case of Purchase Invoices created from Purchase Orders, any Project specified on the 'Terms' card of the Order (or on flip B of an individual Purchase Order row) will be copied over to each Purchase Invoice row if you are using the Consolidate by Items and Project or the Transfer Each Row Separately options in the Purchase Invoice Settings setting.
- When you mark a Purchase Invoice as OK and save it, separate Project Transactions will be created for each row in which you have specified a Project, Item and Quantity. These Project Transactions allow the cost of the purchases to be included when producing cost analysis reports for the Project in the Job Costing module. Depending on how the Project has been configured, the Project Transactions will also ensure that the Customer will be invoiced for the purchases. If you invalidate the Purchase Invoice, the Project Transaction(s) will be deleted. You will not be able to invalidate the Purchase Invoice if the Project Transaction has already been invoiced. Please refer here for more details and an example.
Flip C- N/L Accrual
- Paste Special
N/L Accruals setting, Nominal Ledger
- Default taken from Account
- Please refer to the Accruals page for details about this field and an illustrated example.
- VAT
- As you add rows to a Purchase Invoice, the Calculated VAT field in the footer will be updated with the total VAT value, calculated using the Amounts and VAT Codes in each row.
- If the total VAT amount on the Supplier's Invoice is different to the figure in the Calculated VAT field, you should enter the Supplier's figure in the VAT field in the header.
- In the resulting Nominal Ledger Transaction, the total figure posted to the Input VAT Account(s) will be the figure in the VAT field in the header or, if this field is empty, the figure in the Calculated VAT field in the footer.
- If there is more than one VAT Code in the Invoice, the amounts posted to each Input Account will be calculated using the Amounts and VAT Codes in each row. If you have entered a figure in the VAT field in the Purchase Invoice header, an adjustment will be made to the amount posted to the first Input Account to ensure the total value of VAT posted is correct.
- If you know the VAT value of each row, this calculated adjustment might not be sufficiently accurate. In this case, you can enter the appropriate VAT values in this field in each row. You can only enter a figure in this if you are using the Set VAT Value on Purchase Invoice option in the Account Usage P/L setting. As you enter figures in this field in each row, the VAT field in the header will be updated. Therefore you must use this field in every row (or none) in order for the Purchase Invoice to balance (except rows with zero-rated VAT Codes).
- If you are using the Set VAT Value on Purchase Invoice option, you will have a choice whether to use this VAT field in a particular Purchase Invoice. As mentioned in the previous paragraph, if you do decide to use it, you will need to do so in every row. If you would like to make the use of this field mandatory in every Purchase Invoice in which you have used more than one VAT Code, select the Force Line VAT if VAT Differs and more than one VAT Code option in the Account Usage P/L setting.
Flip D- Serial No.
- The Serial Number of the purchased Item will be brought into this field automatically in the following circumstances:
- In the case of a Purchase Invoice created from a Purchase Order, Serial Numbers will be brought in from the relevant Goods Receipt rows providing you are using the Invoice Based on Goods Receipts option in the Purchase Invoice Settings setting. If the quantity is greater than one, the Purchase Invoice will contain the appropriate number of rows each with a Quantity of one, allowing all Serial Numbers to be brought in. If you are not using this option, a Serial Number will still be brought in, providing you are using the Transfer Each Row Separately option in the same setting. But if the quantity is greater than one, only the first Serial Number will be copied here.
- In the case of a Purchase Invoice created from a Goods Receipt, the Serial Number will only be brought in from the relevant Goods Receipt row if you are using the Transfer Each Row Separately option in the Purchase Invoice Settings setting. If the quantity is greater than one, the Purchase Invoice will always contain the appropriate number of rows each with a Quantity of one, so there is no need to use the Invoice Based on Goods Receipts option.
In all other cases, this field will remain blank. It is a non-enterable field and cannot be changed.
- Price Variance
- Please refer to the Price Variances page for details about this field.
Flip E- Asset No.
- Paste Special
Asset register, Assets module
- Asset Trans. Type
- Paste Special
Choices of possible entries
- The behaviour of these fields depends on the Asset Trans. Type, as follows:
- New Asset
- When the Asset Trans. Type is "New Asset", you must enter a previously unused Inventory Number in the Asset No. field. When you mark the Purchase Invoice as OK and save it, a new record will be added to the Asset register automatically. The Supplier Number and Name, Purchase Invoice Number and Date and Supp. Inv. No. from the header of the Purchase Invoice and the Inventory Number, Description, Amount, VAT, Quantity and Serial Number from the Purchase Invoice row will all be copied to the new Asset record. The Purchase Invoice and the Asset will be connected to each other through the Attachments facility.
- You can also use a more manual method to create Assets from Purchase Invoices. To do so, select 'Asset' from the Create menu (Windows/Mac OS X) or the + menu (iOS/Android).
- Update Asset
- When the Asset Trans. Type is "Update Asset", you must enter the Inventory Number of an existing Asset in the Asset No. field. The Inventory Number must refer to an Asset in which the Used From date is empty. When you mark the Purchase Invoice as OK and save it, the Amount and VAT from the Purchase Invoice row will be added to the Purch. Value and VAT in the Asset record (on a per unit basis if the Asset Quantity is greater than one). The Purchase Invoice and the Asset will be connected to each other through the Attachments facility.
- Revaluate Asset
- When the Asset Trans. Type is "Revaluate Asset", you must enter the Inventory Number of an existing Asset in the Asset No. field. The Quantity will be copied from the Asset record to the Qty field on flip B. When you mark the Purchase Invoice as OK and save it, a record for the Asset will be created in the Revaluation register. The Start. Value 1 in this record will be the Start Value 1 in the most recent existing Revaluation or the Purch. Value of the Asset plus the Amount from the Purchase Invoice row divided by the Qty, and the Trans. Date and the Starting Date 1 will both be the Purchase Invoice Date. The Purchase Invoice and the Revaluation will be connected to each other through the Attachments facility.
If you specify an Asset No., you must also choose an Asset Trans. Type. If you are using the Require Asset Number on Purchase Invoice option in the Account Usage Assets setting in the Assets module, it will be mandatory to specify an Asset No. if the Cost Account on flip A is an Asset or Asset 2 Account specified in any row in the Asset N/L Classes setting, also in the Assets module.
Footer- Currency
- Paste Special
Currency register, System module
- Default taken from Contact record for the Supplier (Purch. Currency) or Default Base Currency
- The currency of the Purchase Invoice: the exchange rate is shown on the 'Currency' card where you can change it for an individual Invoice if necessary. Leave the field blank to use your home Currency (unless you have set a Default Base Currency, in which case this will be offered as a default and should be treated as your home Currency).
- If the Contact record for the Supplier has a Purch. Currency specified on the 'Pricing' card, you can only use that Currency. Otherwise, you can use any Currency.
- All figures entered in the Purchase Invoice should be in the specified Currency: when the Nominal Ledger Transaction is created, they will be converted to your home Currency.
- Withh. Tax
- This field will be used if you enter a Purchase Invoice that is subject to Withholding Tax. You can either enter a Withholding Tax amount in this field yourself, or you can have it calculated automatically. Please refer to the first two examples on the Withholding Taxes - Workflow and Examples page for details about using this field, the configuration that is required and the resulting postings in the Nominal Ledger.
- Ext. Tax
- When you define VAT Codes using the setting in the Nominal Ledger, you can use the fields on flip B to specify that an additional tax, such as an environmental tax, is to be levied. If the VAT Code in any of the rows of the Purchase Invoice is one that you have configured to include such an additional tax, the amount of that tax will be shown in this field, in the Currency of the Invoice. That amount will be recalculated as you add rows to the Invoice. When you mark the Invoice as OK and save it, this Extra Tax will be debited to the Tax Account specified for the appropriate VAT Code. If you have specified a Tax Min. (minimum Extra Tax amount) for a VAT Code, and the Extra Tax in an Invoice is less than this minimum amount, this field will be set to zero. Please refer to the description of flip B of the VAT Codes setting for more details about how the Extra Tax figure is calculated together with examples.
- Calculated VAT
- The VAT sum, calculated from the Purchase Invoice rows. This figure will be calculated automatically as you add rows to the Purchase Invoice.
- This figure will be rounded up or down according to the Default for Calculated Values rounding rules set in the Round Off setting (in the System module).
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The Purchase Invoice register in Standard ERP:
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