Recording VAT on transactions
This help-guide article covers how to record VAT for transactions for the different transaction types
Important: this article is ONLY for churches and charities that VAT VAT-registered. If your organisation is not VAT registered, then you should stop reading this article, and instead simply record VAT as part of the purchase amount when entering transactions.
Creating Invoices
When creating invoices, the VAT rate is set per invoice item and forms part of the invoice total.
[screenshot]
VAT is automatically coded to your VAT Account, ensuring that the VAT elements of invoices you create don't show as income.
[screenshot]
VAT is shown on the customer invoices you create along with your organisation's registered VAT number.
[screenshot]
Recording Bank Deposits
When entering bank deposits, the VAT rate is set per bank deposit line.
[screenshot]
The amount entered should be the amount including VAT (If applicable)
[screenshot]
Note: Donation income automatically has VAT set to 'N/A (Outside the scope of VAT)'
This is also the case for Mixed Income and Petty Cash Income.
Enter Purchases
When entering purchases, rather than entering the full purchase amount and allocating this against funds/categories within the budget details section, you should enter the amount (without VAT).
Then, select the VAT rate and the purchase total at the bottom should match the total of the receipt or invoice you are entering.
[screenshot]
For purchases which do not use one of the standard VAT rates, select the VAT rate as 'mixed (custom)' and then in the VAT amount field, enter the VAT amount
[screenshot]
As well as the standard VAT rates, it’s also possible to enter a custom VAT amount, for example where a purchase is made up of items with different VAT rates.
Show this (buisness card purchase, customer invoice, named donation)
ExpensePlus automatically accrues for VAT within your accounts, and this is shown in it’s own separate fund
show balance sheet
—---------
The VAT functionality within ExpensePlus integrates seamlessly with other features, with digital records of receipts and invoices already been retained within ExpensePlus as part of the expense and payments process flow.
As part of this process flow, the person checking the receipt is able to check that the VAT amount and receipt/invoice amount have been recorded correctly.
show the receipt check screen with VAT enabled