Been asked to do some adjustments to the accounts in vt. It is basically clearing down old outstanding amounts and or invoices. However I am being asked to post them to the purchase invoice reserve code or the suspense account, and im unsure how do that. Any ideas? Also please find attached the actual wording.
Hi Lee
Bit more info required - are these part of an 'in year' tidy up or a year end adjustment of much older invoices? There is a mention of o/bal so i suspect the latter, although for adjustments that an odd narrative. Or is it to do with timing of good received?
What date is the company year end?
Is it just 'invoices' that need to be done or are there any credit notes?
Have they mentioned anything to do with VAT (again I suspect not, but want to be sure).
__________________
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
The company year end is march. The adjustments to be made are following a set of 6 monthly management accounts and the intentions are to have my vt system fall in line with the accountants figures.
There are purchases and also credit notes to be done in a similar way I thought that asking about one would answer the other, and finally a journal entry.
Most of it is to clear up old invoices that fall outside of the current year. And will have to get back to you regarding what they said regarding VAT as cant remember from top of my head. Hope this helps.
A lot of the entries that are old and outstanding are from 2014 when I was learning the software and didnt really understand what I was doing. (Not that I fully know now lol)
Ah right. Sounds like the mid year tidy up will help the year end process. Besides it will then also help your creditor balances match the supplier statements and show the true balances outstanding so will be easier for you in the long run. The reason they dont want things back dating to 2014 is that it relates to a closed off period and will skew the history. Also - if you just key the invoices/reversals to the usual purchases code it will then impact on the overall purchases figure for the year and not reflect the correct position.
So given the age of such things and that these are just effectively internal entries, Im suspecting they have suggested no VAT impact. So just key each as they are listed as either invoices and credit notes (to each suppler account) in the exact same way as usual apart from two things - no VAT - use the outside of scope option (so they do NOT appear anywhere on the VAt return)
- do not code to purchases, but instead to the suspense account. VT+ doesnt have one as standard so I suggest you set one up - can pop it anywhere as once they have cleared the entries the account will revert to nil anyway. Suggest you pop it in your expenses section.
Do not journal these entries ^^ , create dummy invoices/credit notes. (If I were you I would probably also add a reference which shows the link to the original entry in the extra details box).
HTH
__________________
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
Hi Joanne,
That makes so much sense to me after reading that. So I post them to an expense named suspense which I will have already created and bobs your uncle, remembering especially outside the scope of VAT.
Thank you so much its going to make my little file nice and tidy and reflect true balances.
