Hi, I mostly use my bank account for purchases (like parking, stationery etc…) so I then tag these,… However should I be setting up new invoices or purcahses for these, or when I tag them does it do automatically. It seems that If I enter ‘something else not on the list’ it creates something different to ’ pay a supplier’. These suppliers like the council car parks etc., or train fares don’t create an invoice to me… My chart of accounts looks fine, but I am really in the dark if I should just TAG or create a purchase invoice? Am I being stupid ?! I also have DD’s every month - which again don’t create invoices… to me… so I just tag them each month…
If you are tagging to a supplier it will create supplier invoices when you do. If you check your supplier records you will see invoices created from the tagging.
“Something else not on the list” does indeed do something different and does not create an invoice.
It’s good practice to create purchase invoice records for all your purchases even if you don’t necessarily have an invoice as such from the supplier - you can attach uploaded or scanned documents to purchases (e.g. take a photo of the train tickets themselves or forward the booking confirmation email if you booked online) but you can’t do this with “not on the list” tags. And if/when you become registered for VAT then you must use purchase records for all purchases (including ones where you weren’t charged VAT) in order for your vat return to be correct.
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