Payment (PAY)
1.Click on the PAY (payment) button:
The Payment dialog opens:
2.Select the bank account from the Bank accounts list:
3.Enter/select the following data and click on Save:
Reference number
|
Date
|
Paid to
|
Total
|
Input VAT
|
Net
|
Accept the default number, or you can overwrite it if you have your own numbering system
|
Enter date paid
|
Enter name of the payee / details
|
Enter amount paid
|
Enter VAT if relevant - see below
|
Total less any VAT
|
Analysis of net amount
|
Amount
|
Analysis Ledger
|
Analysis Account
|
Total less any VAT
|
Select an appropriate analysis ledger - see below.
|
Select an appropriate analysis account - see below.
|
Receipt (REC)
1.Click on the REC (receipt) button:
The Receipt dialog opens:
2.Select the bank account from the Bank accounts list:
3.Enter/select the following data and click on Save:
Reference number
|
Date
|
Paid to
|
Total
|
Input VAT
|
Net
|
Accept the default number, or you can overwrite it if you have your own numbering system
|
Enter date received in bank
|
Enter name of the payee / details
|
Enter amount received
|
Enter VAT if required - see below
|
Total less any VAT
|
Analysis of net amount
|
Amount
|
Analysis Ledger
|
Analysis Account
|
Net amount
|
Select an analysis ledger - see below.
|
Select an analysis account - see below.
|
Analysis ledgers and accounts to select
Payments (PAY)
Enter payments as described above. The analysis account to select and whether VAT should be entered, depends on the purpose of the payment as follows:
Cash purchases are purchases paid for at the time of the purchase. The term 'cash' is used to describe such purchases as it originated before electronic payments, but nowadays covers all forms of payment.
Total
|
Input VAT
|
Net
|
Amt paid
|
Enter VAT if you are VAT registered and the purchase has VAT
|
Total less any VAT
|
Analysis of net amount
|
Amount
|
Analysis Ledger
|
Analysis Account
|
Total less any VAT
|
Stocks / Cost of sales / Expenses / Fixed Assets (FA)
|
An account the purchase relates to
|
|
If a supplier has invoiced you for a purchase and given you a number of days credit to pay the invoice, the payment is entered as follows:
Total
|
Input VAT
|
Net
|
Amt paid
|
Do not enter any VAT
|
Total
|
Analysis of net amount
|
Amount
|
Analysis Ledger
|
Analysis Account
|
Total
|
Suppliers
|
The supplier's account
|
Note:
•The invoice from the supplier is entered separately as a purchase invoice transaction (PIN). This is known as a credit purchase. •The payment (PAY) of the invoice should be matched to the purchase invoice (PIN) in the supplier's account. See Manually allocate payments to invoices. |
If the original sale was entered as a receipt for a cash sale, the simplest way to enter the refund is to post a reversal of the original receipt transaction. Right-click on the reference number of original REC transaction in any report that includes the transaction and select Make reversal copy.
This creates a negative REC transaction, which has the reverse accounting effect of the original REC transaction.
Note:
•A negative REC transaction is entered rather than a PAY transaction, to ensure that any VAT is correctly accounted for as negative output VAT (rather than input VAT if you were to use the PAY transaction). •If a partial refund was made, you can edit the negative REC transaction to change the amounts (right-click on the REC transaction reference number and select Edit Transaction). |
If you refund a customer for an invoiced sale, payment to them is entered as follows:
Total
|
Input VAT
|
Net
|
Amt paid
|
Do not enter any VAT
|
Total
|
Analysis of net amount
|
Amount
|
Analysis Ledger
|
Analysis Account
|
Total
|
Customers
|
The customer's account
|
Note:
•A credit note to the customer is entered separately as a sales credit note transaction (SCR). •The payment (PAY) of the refund should be matched to the sales credit note (SCR) in the customer's account. See Manually allocate payments to invoices. |
Total
|
Input VAT
|
Net
|
Amt paid
|
Leave blank
|
Total
|
Analysis of net amount
|
Amount
|
Analysis Ledger
|
Analysis Account
|
Total
|
Creditors / Liabilities
|
Net VAT due
|
|
Total
|
Input VAT
|
Net
|
Amt paid
|
Leave blank
|
Total
|
Analysis of net amount
|
Amount
|
Analysis Ledger
|
Analysis Account
|
Total
|
Creditors / Liabilities
|
PAYE and NI
|
|
Total
|
Input VAT
|
Net
|
Amt
|
Leave blank
|
Total
|
Analysis of net amount
|
Amount
|
Analysis Ledger
|
Analysis Account
|
Total
|
Creditors / Liabilities
|
Loan repayments
|
|
Receipts (REC)
Enter receipts as described above. The analysis account to select and whether VAT should be entered, depends on the purpose of the receipt as follows:
Cash sales are sales paid for at the time of the sale. The term 'cash' is used to describe such sales as it originated before electronic payments but nowadays covers all forms of payment.
Total
|
Output VAT
|
Net
|
Amt received
|
Enter VAT if you are VAT registered
|
Total less any VAT
|
Analysis of net amount
|
Amount
|
Analysis Ledger
|
Analysis Account
|
Total less any VAT
|
Income
|
Sales
|
|
If you have invoiced a customer for a sale and given them a number of days credit to pay the invoice, the receipt of payment from them is entered as follows:
Total
|
Output VAT
|
Net
|
Amt received in bank
|
Do not enter any VAT
|
Total
|
Analysis of net amount
|
Amount
|
Analysis Ledger
|
Analysis Account
|
Total
|
Customers
|
The customer's account
|
Note:
•The invoice to the customer is entered separately as a sales invoice transaction (SIN/SIN). •The receipt of payment (REC) of the invoice should be matched to the sales invoice (SIN/SIN) in the customer's account. See Manually allocate payments to invoices. |
If the original purchase was entered as a payment for a cash purchase, the simplest way to enter the refund received is to post a reversal transaction of the original payment transaction. Right-click on the reference number of original payment (PAY) transaction in any report that includes the payment and select Make reversal copy.
This creates a negative PAY transaction, which has the reverse accounting effect of the original PAY transaction.
Note:
•A negative PAY transaction is entered rather than an REC transaction, to ensure that any VAT is correctly accounted for as negative input VAT (rather than output VAT if you were to use the REC transaction). •If a partial refund was received, you can edit the negative PAY transaction to change the amounts (right-click on the PAY transaction reference number and select Edit Transaction). |
If a supplier has refunded you for an invoiced purchase, receipt of payment from them is entered as follows:
Total
|
Output VAT
|
Net
|
Amt received
|
Do not enter any VAT
|
Total
|
Analysis of net amount
|
Amount
|
Analysis Ledger
|
Analysis Account
|
Net amount
|
Suppliers
|
The supplier's account
|
Note:
•A credit note from the supplier is entered separately as a purchase credit note transaction (PCR). •The payment (PAY) of the refund should be matched to the purchase credit note (PCR) in the supplier's account. See Manually allocate payments or receipts to invoices. |
Split analysis
If a payment or receipt needs to be split into different analysis accounts, enter the split amounts on different rows as follows:
Analysis of net amount
|
Amount
|
Analysis Ledger
|
Analysis Account
|
Split of net amount 1
|
Select analysis ledger 1
|
Select analysis account 1
|
Split of net amount 2
|
Select analysis ledger 2
|
Select analysis account 2
|
For example, a receipt (REC) for a cash sale with VAT, where the net amount of £300.00 is split into £250.00 for sales income and £50.00 for fees income:
View the transactions
To view a list of payments and receipts recorded in the bank account, click on the B button on the main toolbar:
Then select the account. This displays a list of transactions in the account on the right of the screen. To view an individual transaction, click on the reference number. This displays the double-entry of the transaction.
To view the double entry of all the transactions in a single report, select Display > Transactions report > [Enter the date range] > [Tick Payment, Receipt] > OK.
Print or export a report
•To print any report or save it as a PDF file, click on the Print button:
Then select Print to print to a printer, or select PDF... to save as a PDF file.
•To copy and paste any report to a spreadsheet, run the report then click on the Copy button:
Then in your spreadsheet, right-click and select Paste.
•To export a report to VT's spreadsheet program, VT Report, select Edit > Export to VT Report.
Bank Reconciliation
A bank reconciliation is not strictly necessary but is recommended as a good bookkeeping control. Click on the R button on the main toolbar:
Then follow the steps in Bank reconciliation.
Payment processor fees
If you receive payment from customers through a payment processor who deducts fees from each payment, the payments received and fees can be accounted for as shown in Payment processor fee deductions:
