Bookkeeping Supplier Invoices

[Gareth83]

We use a number of merchants for supplies, who put them on our credit account and then issue a statement once a month which we then pay.

Should we be adding every single transaction on to our accounting software at it comes in our just okay to pay the statement balance and explain the one transaction as materials for instance?

Some merchants we may have 4 or 5 invoices a day for low value goods

 

[Scalloway]

Is your business VAT registered?

 

[Gareth83]

Yes

 

[Scalloway]

I would add each individual invoice. This makes it easier should there be different VAT rates. Also should HMRC make enquiries.

 

[MyAccountantOnline]

We use a number of merchants for supplies, who put them on our credit account and then issue a statement once a month which we then pay.

Should we be adding every single transaction on to our accounting software at it comes in our just okay to pay the statement balance and explain the one transaction as materials for instance?

Some merchants we may have 4 or 5 invoices a day for low value goods

Yes you should.

 

[Ryan Paul]

If you want to reduce the number of entries on your system you could ask your suppliers to bill you a summary invoice at the end of each month.

 

[NicoJ]

Its perfectly acceptable to have one entry in your software when you get your statement. You need to ensure that the VAT is correctly stated so need to check each invoice. It might therefore be easier to enter each invoice individually.

 

[pentel]

What happens when one of these small invoice is incorrect, the goods are returned or faulty?

By entering each invoice you can mark the ones in query and only pay the ones you agree with.

This would be difficult to keep track of if you just put the statement totals on.

 

[Ryan Paul]

What happens when one of these small invoice is incorrect, the goods are returned or faulty?

By entering each invoice you can mark the ones in query and only pay the ones you agree with.

This would be difficult to keep track of if you just put the statement totals on.

You would just raise a debit note and deduct from total payment value.