The customers ledger
The customers ledger is used to account for money owed from customers for goods or services sold to them on credit (i.e., you give the customer a number of days credit to pay the invoice).
This is done by entering sales invoices to customer accounts in the customers ledger. An invoice is a document requesting money owed for goods and services.
The customers ledger is the equivalent of what may be referred to in other programs as the sales ledger, debtors ledger or accounts receivable.
When to enter a sales invoice
The sales invoice transaction (SIN/SIN) accounts for money owed from a customer and the income earned from a sale. You only need to enter a sales invoice if:
•you sold goods or services to a customer on credit, or
•you are required to issue VAT invoices for sales to other VAT registered businesses2.
When not to enter a sales invoice
If your sales are cash sales1 (i.e., sales paid for at the time of the sale) and you are not required to issue VAT invoices2, sales invoices should not be entered.
A cash sale should be recorded by entering a receipt (REC) transaction and selecting an analysis account in the Income ledger (e.g., Sales).
The difference between SIN and SIN transaction types
The SIN transaction records the sales invoice transaction only. Use this if you have created the invoice document in another program (e.g., a billing system, word processor) and just need to enter the transaction.
The SIN transaction records the sales invoice transaction and creates the invoice document. Use this if you need to create the invoice document in VT Transaction+ in conjunction with entering the transaction. See Creating a sales invoice.
The suppliers ledger
The suppliers ledger is used to account for money owed to suppliers for goods or services purchased from them on credit (i.e., the supplier gives you a number of days credit to pay the invoice).
This is done by entering purchase invoices to supplier accounts in the suppliers ledger. An invoice is a document issued to you by the supplier, which tells you that you owe them money for goods or services purchased from them.
The suppliers ledger is the equivalent of what may be referred to in other programs as the purchases ledger, creditors ledger or accounts payable.
When to enter a purchase invoice
If you have purchased goods or services on credit, a purchase invoice transaction (PIN) should be entered, which accounts for the expenditure incurred and the money owed to the supplier.
When not to enter a purchase invoice
If you have made a cash purchase1 (i.e., a purchase paid for at the time of the purchase), a purchase invoice should not be entered.
A cash purchase should be recorded by entering a payment (PAY) transaction and selecting an analysis account in the Stocks/Expenses/Cost of Sales/Fixed Assets ledger that relates to the purchase.
1.The terms 'cash sales' and 'cash purchases' are used to describe sales/purchases paid for at the time of the sale/purchase, as they originated before electronic payments, but nowadays cover all forms of payment.
2.If you are VAT registered, you are normally required to issue VAT invoices for all sales to other VAT registered businesses, or if a non-VAT registered customer requests one, according to section 3.1 and 4.4 of HMRC VAT Notice 700/21: Record Keeping.
