Hello, do I have to create a purchase invoice even if its just for shopping at the local store please? I would have to do loads of them if that is the case. The coop is not exactly a supplier, just a shop?!! Thanks, Donducébjonos
It’s a good idea to do so if only for record keeping purposes - you need a “purchase” to be able to attach the scanned receipt. But certainly you must create a purchase for anything on which you want to reclaim VAT, as “something not on the list” tags don’t affect the VAT return.
You need record purchases to offset the expenditure against income for income or corporation tax as well as VAT. We don’t have the added complication of VAT and just have a dummy supplier for the various odds and ends that we pay for out of petty cash.
I also use dummy suppliers, for one off purchases. For instatnce I bulk all fuel receipts and maintenance receipts to one dummy supplier.
Thanks for the advice. Thankfully I only use one garage and one maintenance contractor, I wish there was a stock co ntrol app that linked with quickfile…any ideas?!! Thanks, Donducébjonos
Answer is No. just log expenses without suppliers as I assume they are not trade creditors. You can however define the specific ledger for each purchase but logging each name e.g the 5 pounds for car wash and the name of the business is not a sensible task infact it’s a complete waste of your time. All you need is to keep the receipts in rate order so if an inquiry comes up it’s easy for you to present them.
If you are purchasing goods on credit the it’s best practice to keep a log of the supplier name and so on so if any disagreement arises you’ll be in a position to send off a a supplier statement.
Hope that helps