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  • entering a DD payment

    Hi

    Just started using QB desktop 2019. first of the month and a direct debit needs to be entered. I don't want to setup a supplier, just to enter it as a bank payment.

    Its a payment of £171.79, breakdown is as follows:-
    127.90 Net 3.49 Vat 131.79 prem expenses
    25.40 no vat TEL
    15.00 no vat Broadband

    This is a monthly DD, which is the best method to enter it please.

    Regards

    Stephen

  • #2
    Hi Stephen

    If you're not tracking Bills (eg Accounts Payable), you simply use a "Write Cheque" to enter a payment/direct debit.

    You don't need to enter all the details for the Supplier, but it's still best practice to use the correct Supplier Name (eg "BT" etc) in order to identify it easily, especially when reconciling or trying to narrow down a query! (You can just use the "Quick Add" prompt when you type the Supplier Name in the field)
    Shaz Hughes (Dip)Fin ACQ NSW, MICB
    Accredited Reckon Professional Partner
    Registered BAS Agent
    Bookkeeper / Tax Consultant
    Accounted 4 Bookkeeping Services

    Email: [email]shazinoz2@bigpond.com[/email] / [email]shaz@accounted4bs.com[/email]
    Web: [url]www.accounted4bs.com[/url]

    Comment


    • #3
      thank you for your reply.

      how do you enter a DD where the VAT is not standard, i.e. only a partial amount of VAT. Lets say I go to the supermarket to buy supplies for the canteen and the total cost is £100.00 inc vat, however when you go through the receipt, there are only VAT on £8.50 of the items?

      In other software I could enter the payment of £100.00 and then enter the vat figure accordingly. I cannot find a way to edit the vat figure?

      Stephen

      Comment


      • #4
        Hi Stephen

        Use separate lines to record the VAT & non-VAT purchases/expenses.
        (Not sure of the specific non-VAT tax code in UK as I’m in Australia. Ours is NCF - Non-Capital Free of GST - but presumably you guys would have an equivalent tax code there?)
        Shaz Hughes (Dip)Fin ACQ NSW, MICB
        Accredited Reckon Professional Partner
        Registered BAS Agent
        Bookkeeper / Tax Consultant
        Accounted 4 Bookkeeping Services

        Email: [email]shazinoz2@bigpond.com[/email] / [email]shaz@accounted4bs.com[/email]
        Web: [url]www.accounted4bs.com[/url]

        Comment


        • #5
          Thank you again.

          so are you saying you cannot just enter one amount and enter the vat figure as it will not allow you to enter your own vat figure, so I would have to enter multiple lines to count for vat and non vat items?

          Comment


          • #6
            hi

            I have downloaded the sample company to play around with, so I just want you to confirm this is correct?

            I want to enter a DD of £127.90 net £3.49 vat £131.39 total prem expenses

            I choose write cheques
            I choose supplier and enter total amount in amount column.
            I click on expenses and choose relevant expense
            I click vat and choose ESS (EC services standard) This allows the edit box below to be active
            I then edit the amount to the net amount
            I then choose class
            I then choose edit next to the total vat
            a box appears saying edit vat totals
            there are two lines, I change the minus amount to zero and the 2nd line to £3.49 and then click OK

            lastly I click save and close. This seems to be the only way to do it?

            Regards

            Stephen

            Comment


            • #7
              Can you upload a screenshot of the cheque screen?
              It doesn’t sound the same as our version ...
              Shaz Hughes (Dip)Fin ACQ NSW, MICB
              Accredited Reckon Professional Partner
              Registered BAS Agent
              Bookkeeper / Tax Consultant
              Accounted 4 Bookkeeping Services

              Email: [email]shazinoz2@bigpond.com[/email] / [email]shaz@accounted4bs.com[/email]
              Web: [url]www.accounted4bs.com[/url]

              Comment


              • #8
                here is pic of write cheques screen
                Attached Files

                Comment


                • #9
                  Ah yes, that is very similar to ours

                  You can choose to enter either:
                  • Gross amounts & - based on the VAT Code used - the program will determine the VAT amount OF that line total or
                  • Net amounts & - based on the VAT-code used - the program will calculate the VAT amount ON that line total.

                  This option should be available under your "Preferences" which (for us) is accessible from the "Edit" dropdown menu. On ours it is in the "Tax" section & is a checkbox entitled "Allow tax inclusive (gross) costs & prices to be entered" (See attached Screenshot)
                  This will then display the checkbox on all your transactions which is handy when you only have a gross amount that doesn't breakdown the Net & VAT amounts for you.

                  You can choose to "Edit" the VAT amount but I would strongly advise against this as it will likely throw your VAT reports out because the system tries to work with the tax code's set %s.

                  As long as you have entered the total amount at the top, once you start entering partial amounts, QB will calculate it as you go & after each line, will automatically enter the balance remaining on the next line (which you can of course, edit/change & will update & continue reflecting the balance on the next line)
                  You shouldn't need to edit the VAT as entering the separate lines with correct tax codes should calculate the net, VAT & gross amounts correctly.

                  ANY amount field also has a calculator too so you can use the +, -, * (multiply) & / (divide by) symbols which is VERY useful!

                  Have attempted the entry you're doing in the Sample File
                  (Obviously our tax codes are setup with different percentage rates so for the purpose of this exercise - I had to edit the "Tax" (VAT) column amount ) (See attached Screenshot)

                  Hope that helps.

                  (NB My screenshot images wouldn't upload correctly so had to save them as PDFs instead)
                  Attached Files
                  Last edited by shazinoz; 03-06-2019, 12:25 PM.
                  Shaz Hughes (Dip)Fin ACQ NSW, MICB
                  Accredited Reckon Professional Partner
                  Registered BAS Agent
                  Bookkeeper / Tax Consultant
                  Accounted 4 Bookkeeping Services

                  Email: [email]shazinoz2@bigpond.com[/email] / [email]shaz@accounted4bs.com[/email]
                  Web: [url]www.accounted4bs.com[/url]

                  Comment


                  • #10
                    Hi

                    Looking at your chq screenshot. you have entered the £3.49 as Vat which is not the standard %

                    Are you saying that what I should do is break it down to:-
                    17.45 3.49 20.94
                    110.45 0.00 110.45

                    for the sake of correct vat calcs?

                    As I said this is going to be recurring every month until changes may need to be made.

                    Comment


                    • #11
                      Apologies for that Stephen - Was trying to go by your amounts mentioned as I don’t know what the rate is over there.

                      But yes, break it down per tax code per line, then “Memorise” the transaction so that you can easily re-enter it as needed.
                      Shaz Hughes (Dip)Fin ACQ NSW, MICB
                      Accredited Reckon Professional Partner
                      Registered BAS Agent
                      Bookkeeper / Tax Consultant
                      Accounted 4 Bookkeeping Services

                      Email: [email]shazinoz2@bigpond.com[/email] / [email]shaz@accounted4bs.com[/email]
                      Web: [url]www.accounted4bs.com[/url]

                      Comment


                      • #12
                        Thank you for your help. Just as a point of conversation, don't you think that QB is a bit outdated, not having a separate DD area, rather than write cheque? especially as in the UK we hardly write any cheques anymore. It seems as if the software as got stuck in a time warp?

                        I have used Sage for over 30 years, ok we all know it is very expensive, but at least it keeps up with the times.

                        Regards

                        Stephen

                        Comment


                        • #13
                          I get where you’re coming from.

                          QB has been around a long time & the term “Write Cheque” goes back to when cheques were the standard tender for business transactions. It’s actually an American program so not sure how common cheques still are there ?
                          What it really represents is “a payment without a corresponding bill” eg till receipts, direct debits etc.
                          It’s also a good prompt for using an actual Supplier Name rather than a generic categorisation like “Bank Fees” or “Fuel” (a personal bugbear of mine - I tell clients to think “If I WAS writing a cheque, WHO would I be making it out to?” What it’s FOR is where you post it to, not pay it out to! This also makes it easier to identify, particularly if you’re trying to isolate a specific transaction query)
                          Shaz Hughes (Dip)Fin ACQ NSW, MICB
                          Accredited Reckon Professional Partner
                          Registered BAS Agent
                          Bookkeeper / Tax Consultant
                          Accounted 4 Bookkeeping Services

                          Email: [email]shazinoz2@bigpond.com[/email] / [email]shaz@accounted4bs.com[/email]
                          Web: [url]www.accounted4bs.com[/url]

                          Comment


                          • #14
                            Even if you don't want to enter all the details, It is good practice to enter at least the asterisk marked details.
                            Entering the required details helps you keep track of the information in the software.
                            So enter all the details.

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