I was wondering whether it is “acceptable”, for accounting purposes to create a catch all supplier for purchases made through Ebay eg “Ebay purchases”. I really don’t want to create a new supplier for every purchase as we may never buy from the same supplier again.
My thinking is to use a generic supplier and then in the invoice give details of the seller as well as item(s) purchased.
Thoughts/suggestions please
I don’t know if there are any issues regarding VAT as our turnover is below the threshold but we only create separate accounts for suppliers who give us credit. “Cash” purchases go through a generic account.
It would be acceptable to use generic suppliers, providing you can break it down if required by HMRC. This is more important when VAT is involved, but still important even if there isn’t any VAT.
When inputting the data, ask yourself, “if HMRC asked where was that spent, could I prove it?”. Although not a requirement, attaching a document such as the original invoice would be a step in the right direction.
As always, if in doubt, double check with your accountant to be safe (I’m not one).
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