Purchase invoice option

Accounting
1

Hi,

Do I have to upload supplier invoices or can I just use the create purchase invoice option from the bank account feed? When is it not appropriate to use this option?

Thanks!

2

You don’t necessarily have to upload your supplier invoices but you have to keep them somewhere (whether electronically or on paper) in order to be able to prove that the purchases are valid business expenses. It’s doubly important if you’re registered for VAT as you can only claim back VAT on purchases for which you have a valid vat invoice from the supplier.

Being disciplined about attaching scanned or emailed invoices to all your purchase records is a bit more work up front but it will save you hours or days of stress if you ever get an inspection by HMRC.

1 Like
3

Thanks Ian. We have software developers who are sub-contractors residing abroad, who issue us with invoices based on a template that we provide to them. As they reside in Ukraine, VAT does not apply. Is it important to keep their invoices as well? Effectively, what they do is the same as me creating a purchase invoice on our side.

How important is it to have receipts for small subscriptions (e.g. $36 a months)? Is it not obvious that Freshworks Inc. or Google $36 a month is a subscription payment?

4

Hi

It is very important to keep receipts, even for small things. Also, Google has a lot of different kind of subscriptions and products they sell. To prove the expense is related to your business and a allowable expense you have to keep a record.

Hope this helps

5

Thanks! Is there a way to see all transactions that have not been tagged with receipts (i.e. self created purchase invoices only), so I can de-tag and add a receipt?

6

One of the advanced search options in the purchases list is to find items with or without an attached receipt. But you don’t need to untag them, you can add attachments to existing purchases too, either through the receipt hub (when you enter the amount it will offer you a list of existing purchases without attachments first before asking you to create another) or by uploading files directly on the purchase invoice detail page.

It’s only if you’ve tagged transactions as “something not on the list” rather than “payment to a supplier” that you will need to untag and start over.

7

Great! Thanks Ian. Is it possible to attach two receipts to the same transaction (i.e. when there are two separate files)?

8

Hi,
Yes you can do that on the invoice screen. When you open the invoice just scroll down a bit to the attachment section

9

Thank you. How do I find the transactions that were entered as “something not on the list” as they would then presumably not appear in the purchase list?

10

Hi,
In your bank account screen click the tagged button at the end of your entry you wish to check. This will show you a path to the account where it was posted to. But you can’t attach a copy of your receipt to this

11

Thank you. Do I need to have invoices for bank charges? I note that banks do not normally provide invoices for the fees that they deduct from the account (e.g. money transfer fee).

12

Hi
It depends on the fee but for most bank feed you don’t need necessarily a invoice, you can post/tag it straight to the ledger account . But you also can create a invoice to attach a copy of your invoice if you get one from your bank. After creating the invoice you tag the item line of the bank fee to the same bank fee ledger account.

13

Thanks. Can you please clarify what you mean by ‘ledger account’ and ‘bank fee ledger account’? The bank does not provide invoices at all, so its only one is created by us artificially.

14

Hi,
Go to Charts of Accounts and you can see all the ledger accounts.

Hope this helps

15

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