please keep discussions (excluding confidential information) on site otherwise the site ceases to be a useful resource for bookkeepers and accountants.
Many thanks,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
absolutely no need to appologise, you did not suggest taking the thread off site. The request to keep everything on site was towards Eunice.
sorry if my post caused confussion.
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
Not a problem Joanne, we would never get very far if not for a bit of a nose.
Eunice`s query as follows :-
Hi Julie
Thanks for responding to my query on the Bookkeepers Network forum, I am
interested to find out how you deal with the vouchers from Smiths.
Do your clients ring up the sale in the normal way, and do you enter the
gross cost of the purchases (before the vouchers are credited), and then what do
you do with the offset amount which has reduced the amount paid to the Wholesaler?
I am asking as I have done the books for one of my clients and they seem
to have managed to spend more cash than they have taken in, and I can't for the
life of me workout why, but I'm sonerding if it's something to do with these vouchers.
Hope you can help.
My reply to Eunice, as follows :-
News vouchers are effectively retail cash. Their value should be included in daily gross takings. If your client is doing this then the value of the voucher should then be included as a purchase (zero rated).
If they are not included in the DGT then the value of the voucher is added to the gross sales and also added as a purchase (zero rated).
A lot of newagents think vouchers are 'news returns', `credit notes` and see them as payment on account to reduce true value of news invoices, but this only increases output tax !
Smiths invoices are confusing at the best of times, not very user friendly.
Are you making an adjustment for the carriage costs ie deducting carriage from goods for sale, then adding amount to overheads as carriage ?
Hope the above makes sense, let me know if you need any further help or clarification.
OK, so my client does ring up any sales paid for by voucher as normal sales. So far so good!
The wholesaler (Smiths) offsets the cost of the papers, etc, by the amount of vouchers he has received.
So when I enter the payment I enter the Gross amount as the expense, and the voucher value as a negative
figure against a "voucher account". I then journal the value of vouchers included in the sales to take it out
of cash (Dr. Cash Float, Cr "Voucher Account" In this way, I have included the voucher in the sales
and increased my purchase costs accordingly, so I think I'm OK. The Voucher account will then (theoretically,
but there will always be timing difference due to the delay in being reimbursed by the wholesaler) by nil.
I include the ancillary costs, delivery, etc within the purchase cost of the papers rather than as an overhead.
Thanks very much for the reply, Julie, and apologies for circumventing the forum process !
