Sales invoice with Purchase Category nominal code

Hi I need to be able to use a Purchase category (5000s) to assign to a sales invoice and a purchase invoice. I cannot find a way to define this as the category dropdown is prepopulated and there is no option to insert a new category. Can anyone advise how I can do this? I owuld like to use 5005 for this purpose and be able to post sales invoices and purchase invoices into the same account.



You can’t post sales invoices into the nominals in the range 5000-5999 as they are specifically for purchases, just as 4000-4999 are for sales invoices.

What are you trying to do to, there may be another way

Thanks for getting back to me. Basically we are working with a company and paying them a retainer fee. We have to raise an invoice on them initially for an advance. Then on a monthly basis we pay them their commission fee. So we want a purchase account which will show the advance and our monthly payments to them.

Does this help?



You could potentially create a new sales nominal code here and post a negative line item to that sales code from the invoice. You could then journal this to a purchase code later if you wanted to, but it wouldn’t affect the net figure on the P&L.

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Glenn’s suggestion is pretty much what was suggested to me in a similar situation, where I wanted to include a commission payment on a sales invoice.

Slightly different as we invoice for an advance and then we pay back advance and commission each month. It would be so simple if I could just use the same purchase code and the correct balance would be able to accumulate. could I not just journal the 'loan amount across from sales to purchases each month. Obviously the payments and receipts will appear as normal in the bank account.

Many thanks everyone.

You can’t post a sales invoice to a purchase nominal but I’m pretty sure you can raise a purchase invoice for a negative amount (which becomes a credit note).