Purchase Invoices received with Multiple VAT Rates can be posted in either the Purchase Batch Entry screen or the specific purchases Multi-VAT entry screen at the discretion of the user. Whichever option is selected will still result in the transaction entries being recorded identically.

Recording Multi VAT Purchase Invoices Through The Batch Entry Screen:

Purchases> Batch Entry

 If there are two VAT rates attached to the purchases made on the purchase invoice then two entries are required.  Initially record the first element of the purchase invoice at the initial VAT rate and then the subsequent parts.          

Part 1

This is the internal reference that will cross-reference the physical invoice to the transaction entered on the screen.

1. Date - The Date of Issue of the invoice as displayed on the invoice, this should not be doctored.
2. Supplier - Select a Supplier Name from the list of Suppliers (F2) who issued the invoice to you.
3. Set up a New Supplier during Transaction Entry - If the purchase invoice is from a new Supplier who does not already exist within the Supplier listing then simply type the Supplier name into the Supplier field. The program will recognise that the Supplier does not already exist within the Supplier listing and give you the option to set up the Supplier.
4. Invoice Ref - This is the Suppliers Invoice Number as displayed on the invoice to facilitate future cross reference for any queries on the account and to reconcile the closing period balance to the statement.
5. Narrative - The narrative is an optional field and can be completed if required. The narrative will give further information about the Invoice/Goods purchased. With Multi VAT entries, it is advisable to give detail to this part of the transaction being entered at the initial VAT rate.
6. Nominal Account - Select the appropriate Purchase / Expense nominal account to which the purchase invoice relates, e.g. the Telephone Bill will be posted to the Telephone and Fax expense account. If the Purchases are direct cost of sales / Purchases for Resale then choose the appropriate Purchases account as customised for the purpose of the business. Purchases accounts at the relevant VAT rate should be selected, these accounts should only be used to record Purchase for Resale, e.g. Purchases at the Standard Rate.
7. Amount - Enter the GROSS amount for this part of the transaction (bottom line figure inclusive of VAT).
8. VAT Rate - Attach the appropriate VAT rate as indicated on the purchase invoice.  Use the arrow up and down keys on the keyboard to adjust the VAT rate as appropriate.

PART 2

Repeat all of the above steps, entering the same information relating to:

• Reference  
• Date
• Supplier     
• Invoice Reference  (as the transactions are all part of the same original purchase invoice docket this will easily be identified by using the same purchase invoice number)

1. Narrative - Enter the appropriate narrative linked to the secondary part of the invoice.
2. Nominal Account - Choose the same nominal account again or choose a different nominal account as appropriate.
3. Amount - Enter the GROSS amount for this part of the transaction (bottom line figure inclusive of VAT).
4. VAT Rate - Attach the appropriate VAT rate as indicated on the purchase invoice.  Use the arrow up and down keys on the keyboard to adjust the VAT rate as appropriate.