[Question] Supplier Invoices and vat

[Jforssman]

Hi All,

I am hoping that someone can help me.

I have been using Pastel Business Online for the last while, and when entering supplier invoices for my overseas I would use a spreadsheet which factored in all the shipping costs and vat etc. Then when entering into the supplier invoice I would enter the item, price and use the "manual tax" option to put in the vat per item (which as we know is not 14% on imports). Then on the banking side I would take my payment to the supplier as well as the shipping and vat etc from my local shipping agent and allocate them to the supplier invoice.

Now I have moved to pastel xpress 2011 and the WHOLE ballgame has changed.

I am trying to do a supplier invoice, however I do not have a "manual tax" entry and I am now stumped as to how I enter the vat.

ANY help is greatly appreciated, I just have a feeling that this is going to be a very steep learning curve

[Neville Bailey]

You will need to use the VAT type for 100%.

[Jforssman]

Thank you Neville,

Should I create an inventory item, call it vat and just use that with the 100% vat type?

You will need to use the VAT type for 100%.

[Neville Bailey]

No, simply use any GL account. It doesn't matter which one you use, as nothing will get posted to it, because the full amount will go to the VAT control account.

[Jforssman]

Thank you very much Neville! Much appreciated...

[Jforssman]

Just another question regarding this process....

I am processing the cash book and I have an invoice that I paid to my freight agent. I have put in 2 separate entries, one is for their costs and tax and the other would be for the customs vat paid. I have put this in under tax code 12 - goods imported (100%) but I would just like to know if I should post this entry to the cost of sales account as with the rest of the invoice, or do I post it directly to the vat control account?

My feeling is to just keep it on the cost of sales account in order to allocate it to the supplier invoice, the tax code would allocate the tax correctly? But I could be HORRIBLY wrong!

Thanks again for any help!

[Neville Bailey]

As I mentioned before, it does not matter which account you use to allocate the customs VAT, as the 100% tax type will take the full amount to the VAT control account anyway.

[Jforssman]

Thanks again Neville, I just wanted to make 100% sure..... I'm sure you know the feeling when 6 months down the line you realise you have been doing it all wrong and have to fix it!