This guide explains how to use the Accounting application after completing the installation procedure.
The software can be used in different ways according to the requirements of the business. Cash businesses may only need to enter payment records. Where sales are also made on credit, payment being received later, then sales records will also need to be entered to keep track of amounts owing from customers at all times. For payments to suppliers, smaller businesses will often not use purchase records, simply entering a Payment record when the supplier is paid. Larger businesses will want to be able to view amounts owing to suppliers on screen, in which case purchase records will be created when invoices are received and payment records will be created when payments are made to suppliers. After deciding how the software is to be used, it is necessary to specify how VAT returns should be compiled, using consistent settings on the COMPANY tab (output_vat_records, input_vat_records, output_vat_GL_codes)
Entry of records
- For each new record (keyboard shortcut F12), Date should be after the end of the last submitted VAT return, even if the true transaction date was earlier. This is because records are allocated to VAT returns solely by date. Once a VAT return has been submitted, it cannot be amended directly. Any amendment needs to be included on a later return. (See VAT Notices).
- For payments made by the business, enter VAT and Total amounts as normal.
- For payments received by the business, enter VAT and Total amounts with a minus sign in front.
- For Sales or Purchase records, use a minus sign for credit notes.
- Each record includes a number for Who, What (and also Bank for payments). The corresponding name is shown to the right.
- These numbers speed up the entry of records as regularly used ones become familiar. To find the correct number when a box has focus, type the first 1, 2 or 3 letters of the name.
- For the Bank line on payment transactions, if no bank names have been entered on the system, use 0 for cash or 1 for bank.
To submit VAT returns, proceed as follows.
- Verify that all transactions occurring within the VAT period have been entered on the system and are showing the correct date (check with bank statements and any late-received documents).
- Where any earlier transactions were entered after submitting the last VAT return, ensure that they have been allocated a record-date to fall within this current VAT return period (see above). The true transaction date can be shown under Memo if earlier.
- If using Cash Accounting for VAT, ensure that the included VAT has been entered on all receipts from customers in the PAYMENT records.
- On the COMPANY tab, enter values for vat_reg_number, next_vat_return_start, next_vat_return_end, output_vat_records, input_vat_records, output_vat_GL_codes.
- On the records tab, check Next VAT return on the Dates Quickset at the bottom.
- Go through all displayed records and check that the VAT Category is correct. (Keyboard shortcut F1 to F6 changes the category of a record that has focus in the record list. Similarly, F7 adjusts the VAT entry to Standard Rate.)
- Select VAT from the top menu, then select VAT returns.
- Check the VAT dialog window to see that the figures are as expected.
- Press submit when ready.