1) Where is the best place to key a supplier's invoice number - should this be in the 'Ex Ref' box, with then a description of what has been purchased in the 'details' box? Or just in the 'Details' box?
2) What nominal code would be used for the purchase of a kettel for the staff kitchen?
3) My client has just opened a kitchen showroom so most of his expenditure so far has been to kit out the showroom, from obvious large kitchen unit purchases to planks of wood. Can I Capitalise ALL of this expenditure into the 'Fixtures and Fittings' n/codes? Also - would I include the cost of the WHOLE invoice ie including delivery charges/discounts etc, or would I show these under the relevant separate expenses.
4) When he receives an invoice from a supplier that shows delivery charges/discounts etc - should I just key the total of the whole invoice under 'purchases', or split out these charges to the relevant n/codes ( but still have them showing under 'cost of sales'.
5) There is an insurance bill/invoice to be keyed for £644.76, but then I discovered that the bill is being paid monthly which will be for more at £725.40. How do I account for the difference?
6) My customer paid an invoice over the phone by debit card and paid 2p more than the invoice - how do I get rid of the 2p/small differences like this?
Sorry for so many Qs!!
Chesh
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
1.) Supplier invoice number should be keyed in Reference box. 3rd Column. Description in the details box.
2.) Firstly, what is the cost of this kettle. If the kettle costs more than £100, then you can treat it as a asset and post it to Office Equipment. If it is of minimal value then post it to premises expenses n/c 7803
3.) As all the costs relates to fittings, you treat it as an asset and post it (including the delivery charge) to Furniture and Fixtures. As per IFRS 16, cost of the asset & other costs e.g., delivery, labour must be included in the asset costs.
4.) It doesn't make any difference of how you post it. If i were you, then i would ignore discounts and post the purchase total to Cost of sales and delivery to delivery charges nominal and exclude the rest. However, if you client purchases various items then i would suggest to create different nominal codes for each item and post it to respective nominals. For eg., one of my client owns a restaurant and purchases various food items. So i have created various nominal codes (approx about 200) for each item and when i receive invoice i will post each item on the invoice to different nominal. It is entirely between you and your client. If your client wants just the basic information then post it to purchases if not then create various nominals and post accordingly
5.) It is an normal practice for insurance people to charge interest if people pay monthly. In your case there is a interest charge of £80.64. In other words there is an interest charge of £6.72 monthly. You can do this in one of two ways as explained below:
a.) Post an invoice for £80.64 on the supplier account with interset charges nominal code and match the payment accordingly accordingly. You need to keep a track of this while preparing Prepayment journals
b.) Alternatively, if there are tweleve monthly payments, then match £53.73 to the invoice and the balance (which must be £6.72 for 12 monthly installments) post as a bank payment to interest charge nominal (if you don't have a nominal, create one between 7901 to 7910)
6.) You can writeoff the 2p. Select customers and writeoff and in the new tab select your customer name and write it off.
