Setting up Sales Items

Sales items are units of product or service that your business sells. Each unit is described and a unit price is attached (both can be updated easily), this enables sales invoices to be both prepared easily and consistently and in a manner compliant with the VAT invoicing directive (2001/115/EC) Examples could be:

Examples of Sales Items
Sales Item Description Unit of Sale Unit Sales Amount
Motor Cycle Helmets Each 35
Consulting Daily Rate 450
Boiler Service Job Rate 150

Note; that the unit sales amount is entered as an amount; it is not any particular currency. Customers are set up with an invoicing currency, the default for which is sterling GBP. Extending a number of units of a sales item by the unit sales amount, the currency being determined by the customer invoicing currency, creates a sales invoice.

Setting up a Sales Item

Setting up sales items is accessed via the income menu.

Income - Sales Items - ADD

Note that if the stock module is being used then a sales item can be added directly as a stock item. See Stock - Setting up Stock Items for more on this.

Enter a Description of the sales item (see examples above). This will appear on the invoice line item. The Product Code field may be used to hold a user-defined alpha-numeric code as a product code. If you enter a '+' the system will automatically insert the record id for the current item. This record id is guaranteed to be unique in Liberty Accounts - but may not be a consecutive sequence. This code will be picked for inclusion as the product code when a "goods" style sales invoice or credit note are created. Additionally this field is useful for entering codes that cross-reference codes in other systems and is also used for the invoice and bill uploads. Note that the codes are case-sensitive and must match exactly during uploads for an item to be loaded.

From the Item Type (see note below) drop down list select the nature of the sales, for example is it a product or service, a reimbursable expense or a commission. Enter Net Amount per unit of sale for the item. If usually the amount varies, leave as zero, and edit the Net amount when creating an Invoice. If the entity has VAT tracking enabled a default VAT Rate can be selected from the drop down list. Note that at the point of creating the invoice this may be amended.

When sales invoices are created the sales value is recorded in a sales account. Select from the drop down list the relevant sales Account for this type of sales item. If a desired account is not available, set it up using Add a Custom Account via the Accounts menu. When complete click on SUBMIT to store the new sales item.

Item Type

There are ten item types, some have a special purpose in addition to describing the nature of the sales item.

Commission
for invoicing sales commission
Deposit
used to record a customer deposit received pending a final sales invoice
Discount
used for showing discount amounts on a sales invoice
EU Ancillary Service
use for amounts that are ancillary to the supply of a product to an EU customer
Fixed Asset Sale
will also be picked up in the EC sales list if relevant
Other charge
used for unusual charges, such as penalties
Product
used for goods
Reimbursable Expenses
use when expenses have been incurred that a client will reimburse.
Service
an activity such as design, consulting and hiring

Note: If you are a UK VAT registered trader that supplies goods or services to a registered trader in another member state, then an EC sales list (VAT101) is required either monthly or quarterly. A sales item with an item type of Product or EU Ancillary service will have a transaction indicator B2B Goods; all other item types will give B2B Service. An EC sales list can be created by the system by configuring VAT appropriately via the VAT Configuration menu item. See VAT - Setting up and Configuration for more information.

Additionally in the VAT100 return the value of supplies of goods (but not services) are reported in box 8 of the return. To ensure this happens automatically make sure the relevant sales item has an item type selected as Product. If you are uncertain on these points you are strongly advised to consult your advisor.

Editing, deleting or making inactive a Sales Item

The details of any sales item may be edited via the Income menu.

Income - Sales Items - List - Click OPEN from the Action Box for the relevant item

The sales item is presented for the particular item. Amend as necessary and SUBMIT or DELETE to remove.

A user created sales item is given an active status so that it appears in drop down lists. If it is preferred to suppress the appearance in drop down boxes toggle the switch to INACTIVE.


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