Hi
Fairly new to thisd, having moved from TAS Firstbooks
We are a food producer, and often buy in ingredients from wholesalers, some of which we use for our own use.
How do I account for this when setting up the purchase invoice/tagging in Quickfile please?
In TAS I would just put our home use items under drawings when posting the purchase. But drawings isn’t a category on purchase invoices on Quickfile it seems?
Thanks
Are you registered for VAT?
The “correct” way to handle it, and the way you must do it if you are VAT registered, is to record only the business use portion as a purchase in QuickFile. This means that when you make payment to the supplier the amounts you pay won’t exactly match the amount you “owe”, so instead of tagging the bank payments directly as payment to a supplier you would tag them as a bank transfer to your drawings bank account and then mark the purchase as paid from the same drawings account. This has the effect of transferring the value of the personal use part from current account to drawings.
If you’re not VAT registered you can get away with your previous method of putting a line on the purchase invoice mapped to drawings. To do this you would need to create a new drawings bank account instead of using the default one, then go to the chart of accounts and click the 
next to the new bank account nominal and tick the option to allow it to be used on purchase invoices (the reason you need a new bank account for this is that the is greyed out for the default nominal codes).
But like I say you can only use this second method if you’re not registered for VAT. If you are, or think you might become so in the foreseeable future, then I’d get used to using the first method and only making “purchases” for your actual business-related costs. And only claim back the VAT on the business-related costs, not the personal use portion.
The way I tended to do this when I ran a shop was to do a two line purchase, with one line for the total as per the supplier’s invoice and then a second negative line subtracting the personal use items, e.g.
- Chocolate bars £100 net, 20% VAT = £20, line total £120
- Less: taken for own use, -£2 net, 20% VAT = -£0.40, line total -£2.40
and the calculated invoice total at the bottom would be £98 net, £19.60 VAT, £117.60 grand total. Tag the £120 out from my current account as a transfer to drawings, and “log payment” for the £117.60 purchase from the same drawings account, which leaves current account £120 down, drawings £2.40 up, and the £117.60 purchase as fully paid.
Alternatively you can tag the £120 as payment to a supplier using the “pay down multiple invoices” option to pay off the £117.60 and leave £2.40 unallocated, then click through to the payment and “refund balance” to send the £2.40 to drawings. Same effect overall in a few more clicks, but that way it means that the tagged current account transaction links directly to the supplier rather than having that level of indirection via drawings.
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