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How do I enter an expense on the sales ledger (eg market expense deducted at source from sale of livestock by a farmer) BUT use a purchase vat code not a sales vat code?

 
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Best answer July 12, 2019

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Level 2

How do I enter an expense on the sales ledger (eg market expense deducted at source from sale of livestock by a farmer) BUT use a purchase vat code not a sales vat code?

Thank you that's exactly what I want I've been on to Quickbooks support via e mail and a telephone conversation for a number of days and they did not know how to do this When I think of the time taken to try and get an answer from them ( probably 4-5 hours of my time) it's quite disappointing Their final solution was: 'We have running some more tests but the best option is still to create an Invoice and an Expense/Bill. In regards to finding the total amount for the transaction it might be best to create a Customised Report where you can get this information. Here is a helpful article from our Community page with some tips on this. https://quickbooks.intuit.com/community/Reports-and-Accounting/How-to-customise-reports/m-p/239752' ie a sales invoice to the sales ledger and a purchase invoice to the purchase ledger and then create a customised report to find out the net balance owed from the customer - if that is at all possible It's a bit alarming that this is the official way to deal with this type of transaction Anyway thanks again - I am more used to Sage where journals to the Debtors control cannot be done

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QuickBooks Team

How do I enter an expense on the sales ledger (eg market expense deducted at source from sale of livestock by a farmer) BUT use a purchase vat code not a sales vat code?


Hello ch14,

 

You can do this by going to the + icon > expense and select the sales account in the category menu (the income accounts are at the bottom of this menu). This will still allow you to use the purchase VAT codes as normal.

 

Thanks,

 

Talia

Highlighted
Level 2

How do I enter an expense on the sales ledger (eg market expense deducted at source from sale of livestock by a farmer) BUT use a purchase vat code not a sales vat code?

 
Highlighted
QuickBooks Team

How do I enter an expense on the sales ledger (eg market expense deducted at source from sale of livestock by a farmer) BUT use a purchase vat code not a sales vat code?

Even if you select a customer in the payee field, you should still be able to select purchase VAT codes. The category will be whatever sales category you would like to use. After saving the transaction, does it post to Box 1 or Box 4 in your return?

 

Thanks,

 

Talia

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Level 2

How do I enter an expense on the sales ledger (eg market expense deducted at source from sale of livestock by a farmer) BUT use a purchase vat code not a sales vat code?

 
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Moderator

How do I enter an expense on the sales ledger (eg market expense deducted at source from sale of livestock by a farmer) BUT use a purchase vat code not a sales vat code?

Hi ch14

 

I've read your original post. In this case, you'll need to create a journal entry and select the VAT code for purchases, so it will reduce the customer's balance.

 

Let me show you how:

  1. Click on the Plus (+) icon and select Journal Entry.
  2. Set the date from the Journal date field.
  3. Under the Account column, choose Debtors.
  4. Enter the amount in the Credits column and select a customer.
  5. On the next line item, choose an expense account and enter the amount in the Debits column.
  6. Select the customer and choose the vat code for purchases.
  7. Once you're done, click on Save and close.

You'll have to ensure the VAT amount on the journal entry is the same as the invoice. I'll also recommend reaching out to your accountant for further assistance.

 

I've attached some screenshots below, so you'll know what I'm referring to.1.1.PNG

 

1.2.PNG

 

I'm linking an article that will provide you with some tips in creating a journal entry.

 

Please let me know how it goes by leaving a comment below. I'll be here to keep helping. Have a good day.

Highlighted
Level 2

How do I enter an expense on the sales ledger (eg market expense deducted at source from sale of livestock by a farmer) BUT use a purchase vat code not a sales vat code?

Thank you that's exactly what I want I've been on to Quickbooks support via e mail and a telephone conversation for a number of days and they did not know how to do this When I think of the time taken to try and get an answer from them ( probably 4-5 hours of my time) it's quite disappointing Their final solution was: 'We have running some more tests but the best option is still to create an Invoice and an Expense/Bill. In regards to finding the total amount for the transaction it might be best to create a Customised Report where you can get this information. Here is a helpful article from our Community page with some tips on this. https://quickbooks.intuit.com/community/Reports-and-Accounting/How-to-customise-reports/m-p/239752' ie a sales invoice to the sales ledger and a purchase invoice to the purchase ledger and then create a customised report to find out the net balance owed from the customer - if that is at all possible It's a bit alarming that this is the official way to deal with this type of transaction Anyway thanks again - I am more used to Sage where journals to the Debtors control cannot be done

View solution in original post