Supplier Bill

The bill/credit note maintenance transaction allows you to record a bill or credit note received from a supplier. Subsequently, paying a bill is done through the Pay Bills screen.

Bill/Credit

Indicate the type of transaction that you are entering by selecting either bill or credit. Select bill when you wish to record the details of a bill you have received from a supplier. Select credit when you wish to record the details of a credit note you have received from a supplier.

Supplier

The supplier list contains all active suppliers associated with the business.

Auto-complete field names

Rather than a drop-down to select from a list, simply start typing and the system will identify any occurrences of the combination of characters entered and you select from that shorter list. As an example, type 'able' and the system will offer:

Able Contractors

Capable Cleaning

Reasonable Roofers

etc.

Adding new customers / suppliers

If the combination of characters you enter does not provide any results, press tab and the system will know you need to add the customer/supplier and ask you to confirm the details. At this point add address, email contact etc if required.

Trading Terms

The trading terms represent the number of days by which settlement of an invoice or bill is due. The trading terms for a customer or supplier can be specified via the appropriate maintenance transaction, but can be overriden on documents if required.

When raising an invoice an additional payment terms option "Paid In Full" is available. When this option is selected an additional drop-down appears which allows you to select a bank account. If a bank account is selected the receipt will be recorded and the invoice closed.

Reference

Enter any reference to be associated with the transaction.

The line items that make up the bill or credit note value now need to be added. A line item is a value posted to an expense account extended by the VAT if appropriate.

ADD ITEM button accesses the line item input. Select the Item from the drop-down. Default values for VAT Rate (If VAT registered) are displayed. These defaults may be overridden. Enter any Additional Item Text (This will be printed on the Bill) The system will extend the values and summarises them.

SAVE ITEM button saves that line item in the screen. Clicking ADD ITEM button on each occasion allows user to enter further line items. UNDO ITEM cancels the current line item data.

Bill Amount

The amount is the total of the items associated with this bill/credit note.

Purchase File Ref.

When a purchase type transaction is recorded by clicking the button a unique purchase file reference number is given to the transaction. This is in addition to the normal sequence number series that allocates an unique number to each transaction and is part of the audit trail.

The purchase file reference number starts from 1 and increments for each subsequent purchase transaction as it is entered regardless of the transaction date applied. The number can be used to write on the original document as an easy reference (rather than by transaction date) before physically filing.

The purchase filing reference number is assigned and shown in the confirmation dialogue when the transaction is submitted; up until that point "TBA" is displayed representing "To Be Assigned".

The purchase filing reference is displayed if the transaction is subsequently viewed or edited and can be used in the Find Transaction search facility at the top of the LISTS menu for easily locating a document.

Note, that not only is a Bill transaction given a Purchase Filing Reference so to is the subsequent payment transaction, as this may cover multiple payments or be a part payment. Also if a transaction is deleted the purchase filing reference number will also in effect be deleted and could result in a gap in the series.

Reverse Charge VAT

Tick this flag if you want to generate reverse charge VAT postings for a purchase.

Typically this is required for a purchase from a non-EU country where no VAT has been paid. It simply provides a means of accounting for the VAT that would have been paid if the good or service was purchased in the UK. Applying a reverse charge VAT process will have no impact on your VAT liability.

To use this feature simply set the VAT on the item(s) to the appropriate VAT rate(s) that would apply had the item been purchased in the UK and submit the transaction with the Reverse Charge VAT box ticked.

If you subsequently view the item you will notice that the VAT rate has been set by the system to "Out of Scope". This is correct. If you need to make changes to the transaction you must reset the VAT codes to the appropriate code so that the Reverse Charge can be created again using the correct VAT amounts.

Account

The account drop down list is used to associate the line item of a transaction with an account from the chart of accounts.

If appropriate to the screen form in use, when a transaction is first created, Liberty Accounts uses a filter mechanism to try and make it easy to select an account from what might otherwise be a very long list of accounts.

For the main purchase transactions the account drop down initially presents a list of expense accounts only.

For other non-purchase transactions the account drop down initially contains a list of account types. Select the account type from which you want to select an account e.g. Current Liabilities. You will then be presented with a filtered list of accounts appropriate to the selected account type. Simply select the required account.

If you wish to choose an account that is of a different account type simply select "Clear Filter..." and start again.

When editing existing transactions you will be presented with a list that contains all of the accounts, separated using highlighted headings for each account type.

Net Amount

The net amount associated with the item.

When recording purchases, if you have a gross amount and want liberty to calculate the net amount and vat amount simply enter the gross amount in this field, select the appropriate VAT code, and type "g" in the VAT amount field.

VAT Rate

The appropriate VAT rate for the account must be selected. Default VAT rates can be associated with an account via the Account Maintenance screen which is available from the chart of accounts view.

If the business is on the HMRC Flat Rate VAT Scheme, as defined on the VAT details tab of the Business Profile, the VAT rate will default to "Out of Scope" for all purchase transactions. This can be changed if necessary. Exceptions may apply for purchases of capital assets of significant value, please consult your professional advisor.

Current VAT Rates

20.0%, 5% & Zero, used for normal UK VAT transactions.

Exempt

Used when a transaction is an exempt supply; such as the purchase of insurance. See the VAT Guide (Notice 700) for more details or visit the Revenue and Customs site at www.hmrc.gov.uk

EU Acquisition

Used when you purchase goods from a VAT registered supplier in an EU member state. Make sure that the VAT code is set to EU Acquisition, and that the VAT amount shows the VAT which would have applied if the purchase had taken place in the UK. The correct country must be set on the supplier record to ensure correct reporting of the transaction.

EU VAT

Only used if you have you have incurred VAT in an EU member state, (i.e. local VAT). This CANNOT be recovered as input tax for UK VAT. You may make a claim for refund from the member state. A scheme exists to do this known as "Refunds of VAT in the European Community for EC and non-EC businesses" The details are in notice 723, refer to the Revenue and Customs site at www.hmrc.gov.uk Use of this VAT code is described more fully in the "VAT and Liberty Accounts" user guide.

Out of Scope

Used when a transaction is not in the VAT system at all. For example payments into a money purchase pension scheme are out of scope because they are equivalent to savings. Recording a payment of VAT to HMRC is a common example where Out of Scope should be used, as are salary payments and repayments of director loans. Using this code will result in no VAT reporting impact.

None

This code is used where there is no VAT on a purchase transaction, typically from a supplier who is not vat registered. This is not the same as zero rated, exempt or out of scope. The impact is that the value of the purchase is included in box 7 of the VAT 100 return.

Average

This code can be used where there the transaction is recording an aggregation of mixed VAT codes in a single entry with the VAT amount manually set as required.

Special Note - Reverse Charge for Purchases From Non EU Countries

Typically this is required for a purchase from a non-EU country where no VAT has been paid. It simply provides a means of accounting for the VAT that would have been paid if the good or service was purchased in the UK. Applying a reverse charge VAT process will have no impact on your VAT liability.

To use this feature simply set the VAT on the item(s) to the appropriate VAT rate(s) that would apply had the item been purchased in the UK and submit the transaction with the Reverse Charge VAT checkbox ticked (Located in the "Analysis" tab of the voucher in the top half of the screen).

If you subsequently view the item you will notice that the VAT rate has been set by the system to "Out of Scope". This is correct. If you need to make changes to the transaction you must reset the VAT codes to the appropriate code so that the Reverse Charge can be created again using the correct VAT amounts.

VAT Amount

The amount of VAT charged on this item is automatically calculated based on the vat code selected but can be changed.

When recording purchases, if you have a gross amount and want liberty to calculate the net amount and vat amount simply enter the gross amount in the net amount field, select the appropriate VAT code, and type "g" in the VAT amount field.

Customer

Associate an item with a specific customer if the item is classed as a reimbursable expense.

Occasionally expenses are incurred by your business on behalf of a customer to whom you will invoice the expense to recover it. By selecting to relate an expense in this transaction to a customer, a report can be produced that lists all reimbursable expenses that have been recorded. You may use this report to ensure that you have invoiced all those expenses to the appropriate customer.

The report is found under the Reports Menu.

Reports - Customers - Reimbursable expenses

Note that the option to do this is set the the organisation level by ticking the Tracking Rechargable Expenses on the organisation Profile. If the option is not selected, no customer selection drop-down is offered. To switch on navigate to the Organisational Profile.

Control - Organisational Profile - Optional Features

To record the transaction click on the SUBMIT button.


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