Entering invoices as you receive them allows you to keep track of who you owe money to and ensures that your accounts are completely up to date.
For the majority of VAT registered users it will also mean that you can claim the VAT back before you have to pay the supplier. (NB This is different if you are registered for Cash Accounting for VAT where the VAT is only accounted for on payment but this is only applicable to a minority of agricultural businesses.)
You only need to enter supplier invoices in Farmplan Business Cloud if you do not pay your suppliers straight away. For example, if you bought fuel from a garage and paid instantly then you would not need to enter a supplier invoice. You would just process this transaction through Banking.
To enter a supplier invoice in Farmplan Business Cloud go to Suppliers > Supplier Invoices > New Invoice
Alternatively, you can also enter new supplier invoices by clicking the Quick Links menu and then selecting New Supplier Invoice.
You will then be able to enter the details of your invoices against the next spare line, as shown below:
Each transaction will need the following details:
Date: This is the date on the invoice
Account: This is the trader. New ones can be added at the bottom of the drop down list.
Inv. Ref: the reference on the invoice (usually the invoice number)
Category: Pick the category that this transaction relates to. New categories can be added from the bottom of the list.
Description: Write a brief description of what this transaction is for. This will be useful for future searches and will help your accountant at the end of the year.
Currency: It is only necessary to use this if you have opted to use multi-currencies.
Quantity/Price: If applicable, enter the quantity and price to calculate the net figure, otherwise leave these blank
Net: The figure before VAT
Tax Code: This will default to the code that you have opted to use with the selected category when you created it, providing this business is VAT registered see Company Settings > Financial Info. If no default code has been selected then it will use the Standard rate. This can be changed if applicable.
VAT: The VAT amount will be calculated but can be overwritten if there is no quantity or price. If there is then add another line (split lines, see below) with the difference.
Please note: If you specified in the initial wizard that you are not VAT registered you will only see the total amount field with no reference to VAT. You are also able to use different VAT schemes such as Flat Rate – see Company Settings – Financial Info.
If you are VAT registered, there are several different VAT codes you can use on your invoices:
ST: This is standard VAT. This is automatically set at the current rate of 20% but can be edited if necessary
Z: This covers services/products you provide that are zero-rated for example grain and livestock sales.
RR: Reduced Rate. Use this if some of the services/products you purchase need to be entered at the reduced rate of 5%, for example heating oil.
NV: This covers transactions that are outside the scope of VAT. You may require this where VAT does not apply, such as drawings, wages or loans repayments.
EX: This covers services/products you purchase that are exempt from VAT Examples of exempt expenses are domestic rents or insurance.
P and P1: These codes are used if you need to make Partial Exemption calculations. (P - Partially Recoverable and P1 - Irrecoverable.)
ES and EG are for Euro purchases of services and Euro purchases of goods to another EU VAT registered business – Farmplan Business Cloud will calculate the output/input VAT required to go on the VAT return automatically. (Pre January 2021 or Northern Ireland only).
RC: Reverse Charge. This tax code can be used for businesses in the Construction Industry Scheme (CIS) see Domestic Reverse Charge . It has also been made available for the relevant transactions with the EU. See Post Brexit VAT Changes If you are unsure which tax code to use, please seek help from your accountant.
See also How do I add customised tax codes?
Multiple Lines – If this entry has more than one item on it, then use the Split button at the end of the line, rather than filling in the detail on this screen.
The detail can then be entered for each individual line – use the + sign to add more lines.
To enter another invoice click the plus button. Once you have finished click 'Save All'.
Attach Documents
If you have an electronic copy of the original invoice it can be attached to each transaction for future reference and will be accessible for all users of your data including your accountant.
See Also