Hi, I am wanting to post part of a purchase to the directors loan account 1201 but the only available account in the dropdown is "Directors Remuneration. This is a screen shot from the purchase module. I want to add the 50p to the DLA. Any ideas please? Using Affinity if that makes any difference.
Hello @banjo_mark
On an invoice you can not post to a bank account.
Once the invoice is created you can pay part of it using the bank (DLA)
You would not be billed £65.00 from the supplier and £0.50 from the director as you suggest?
In your example you are being billed £65.50 (from the supplier)
Do you mean the payment is being split £65 from your current account and £0.50 from the DLA account?
Hi Steve,
Yes, The received purchase invoice has £65 inc VAT of purchases that are the company’s and the 50p Xero Rated is a charity donation which needs to go to the DLA.
In the same way as if fuel and a sandwich were bought together I would post the fuel and then send the sandwich to the DLA as a personal expense.
Is that possible?
Kind Regards,
Mark
PS. To enable me to provide a better service when I am busy or off site, my phone line will be switched to voice mail so please leave a message and I will get back to you.
Mark Elvin MICB PM. Dip
Tolc Ltd
T/A Vandal Proof Signs & Signs & Graphics Etc.,
Bosch Car Service Centre,
Hornsea Road, Seaton,
E. Yorkshire, HU11 5RQ
Tel: 01964 535275
E: markelvin@gmx.com
W: www.vandalproofsigns.co.uk
W: sgetc.co.uk
Hello @banjo_mark
Ok so based on this
The received purchase invoice has £65 inc VAT of purchases that are the company’s and the 50p Xero Rated is a charity donation which needs to go to the DLA.
You would have an purchase invoice with 2 lines
£65 inc VAT - to the purchase code
£0.50 @0% - to a code in your profit an loss code for charity donations
When it comes to paying it the payment would be split
At the bottom of the purchase invoice log the payment of £65 inc vat to your bank account
It will show as paid in part
Go back into the invoice and click log payment to pay the remainder using your DLA
The way I would do this is to record only the business expense part (£55+VAT) as a purchase in QuickFile, which would total £66 including VAT. You would then tag the bank payment of £66.50 using the “pay down multiple invoices” option so it pays the £66 purchase in full and has 50p unallocated. Then go to the part-unallocated payment record and “refund balance” into the DLA bank account.
The net result here is that your P&L shows a £55 expense, £11 is sitting on the purchase VAT control account ready for your next VAT return, and the remaining 50p is effectively a bank transfer to the director’s loan (money you have borrowed from - or been paid back by - the company). Alternatively if the refund balance thing is too much faff then “log payment” for the £66 purchase from the DLA and then tag the £66.50 current account transaction as a transfer to the DLA - same result overall.
Exactly the same approach works for the sandwich and fuel - record only the business part, payment from the bank is for the total business+personal, then refund balance to the DLA. Putting the personal parts on the purchase invoice to a separate nominal that you journal out later works from an accounting point of view but it would overstate box 7 on your VAT return (because the QuickFile VAT return system populates box 7 from the total net value of the relevant purchases, irrespective of which nominals the various lines were assigned to).
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Thanks Ian. I am catching up with the VAT return so am 3 months behind and don’t think that the bank feed will bring the payments in automatically at that age so I will run with your last option, albeit that it affects box 7 and then when I have the feed in date use the preffered first option you describe.
Kind Regards,
Mark
PS. To enable me to provide a better service when I am busy or off site, my phone line will be switched to voice mail so please leave a message and I will get back to you.
Mark Elvin MICB PM. Dip
Tolc Ltd
T/A Vandal Proof Signs & Signs & Graphics Etc.,
Bosch Car Service Centre,
Hornsea Road, Seaton,
E. Yorkshire, HU11 5RQ
Tel: 01964 535275
E: markelvin@gmx.com
W: www.vandalproofsigns.co.uk
W: sgetc.co.uk
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