Difference between revisions of "How do I Spread a Purchase Invoice?"

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== Summary ==
 
== Summary ==
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The following article explains how you spread the value of a purchase invoice over a range of months.
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The following article explains how you spread the nett value of a purchase invoice over a range of months.  
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Where you are billed in advance e.g. Rates or Insurance, this option allows you to apportion costs and overhead values to your P&L into the period they relate to.
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{{Warning|text=This option should not be used to process staged payments. This is only for spreading the nett value of an invoice.}}
  
 
== More Information ==
 
== More Information ==
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Occasionally, you may have an invoice that needs to be posted across a number of months,
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When spreading an invoice the following processes will occur:
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# The total Nett will be Debited to your specified Purchase Centre and linked Nominal centre.
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# The total VAT will be Debited to the Z999 VAT Control Nominal centre.
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# The Invoice total will be posted to Credit Z993 Creditors Nominal centre
  
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{{Example|text=A rates invoice.}}
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These postings will be immediately visible within Nominal review using preview mode and subsequently will be posted to the Nominal as part of your month end process.
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# An automatic journal entry will be posted immediately to Credit the Purchase Nominal centre and Debit the Spread Control Nominal centre (by default this will be Z990). This will be dated to match the invoice date.
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# Automatic journal entries will be posted immediately to Credit the Spread Control Nominal centre and Debit the Purchase Nominal centre. These journals will be dated the first of the months specified when choosing over which periods to spread the invoice.
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{{Warning|You should not use this option if you are intending on completing the payment details whilst posting the invoice. You should post and spread your invoice then process your payment using [[Paying suppliers|Purchase Ledger Payments]].}}
  
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{{Warning|It is important when spreading an invoice to be aware that if a payment is filled in the spread will affect the payment not the invoice, so it's best to post spread invoices first, then post the payments.}}
 
  
 
* Go to {{Menu|{{PL}}|Purchase Ledger Postings}}.
 
* Go to {{Menu|{{PL}}|Purchase Ledger Postings}}.
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* [[Posting purchase invoices|Post on the purchase invoice in the usual manner.]]
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* [[Posting purchase invoices|Post the purchase invoice in the usual manner.]]
 
* Move to the {{DataPrompt|Amount Details:}} section, and on the {{DataPrompt|Spread inv.}} field, select {{DataValue|Yes}}.
 
* Move to the {{DataPrompt|Amount Details:}} section, and on the {{DataPrompt|Spread inv.}} field, select {{DataValue|Yes}}.
 
* Click {{KeyPress|Done}} and {{KeyPress|Accept}}.
 
* Click {{KeyPress|Done}} and {{KeyPress|Accept}}.
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{{Note|You are now presented with the Nominal Postings Spread window, and from here you have a couple of options.}}
 
{{Note|You are now presented with the Nominal Postings Spread window, and from here you have a couple of options.}}
  
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=== Spreading the invoice over twelve months ===
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=== Specify the Control Account ===
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* Pressing {{KeyPress|A-F5}} will allocate the nett invoice value over a twelve month period from the date of the original posting.
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By default the control account will be Z990 - Suspense but you may change this if you wish.  
 
* Press {{KeyPress|F7}} to amend the control account which will be used to hold the balance on the balance sheet.
 
* Press {{KeyPress|F7}} to amend the control account which will be used to hold the balance on the balance sheet.
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** Enter the [[How do I Search for a Nominal Centre?|Nominal Centre]] to use as the control account else the default centre {{DataValue|Z990}} will be used- you will not be able to amend this once accepted.
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** Enter the [[How do I Search for a Nominal Centre?|Nominal Centre]] to use as the control account else the default centre {{DataValue|Z990}} will be used.
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** Enter a comment for the postings else the default comment of {{DataValue|Spread}} plus the purchase ledger number of the posting will be used.
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{{Warning|text=You will not be able to amend this once the posting has been accepted.}}
  
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* Pressing {{KeyPress|ESC}} and {{KeyPress|Accept}} will perform the posting.
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=== Specify the Comment ===
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By default the comment will be the comment {{DataValue|Spread}} plus ledger number of the purchase invoice. You may change this if you wish to ensure you can easily track the postings through your nominal.
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* Press {{KeyPress|F7}} to amend the comment.
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* Press the down arrow key to move to the {{DataPrompt|Comment}} field,
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* Overwrite the default comment then press {{KeyPress|Enter}}.
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{{Warning|text=You will not be able to amend this once the posting has been accepted.}}
  
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=== Spreading the invoice over certain periods ===
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=== Choosing the periods ===
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* You can tag specific periods across which you wish to post the invoice by pressing {{KeyPress|F5}} against the relevant period, and using the cursor keys to navigate the periods.
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Using one of the options below, select which months to spread the invoice across and the values per month.
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* Once you have tagged the required periods, press {{KeyPress|F2}} to spread the nett invoice amount across the tags.
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* Press {{KeyPress|F7}} to amend the control account which will be used to hold the balance on the balance sheet.
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* Press {{KeyPress|A-F5}} to auto allocate the nett invoice value over a twelve month period from the date of the original posting. Press {{KeyPress|F2}} to evenly spread the nett.
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** Enter the [[How do I Search for a Nominal Centre?|Nominal Centre]] to use as the control account else the default centre {{DataValue|Z990}} will be used- you will not be able to amend this once accepted.
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* Press {{KeyPress|F5}} against each month to spread nett invoice value over. Press {{KeyPress|F2}} to evenly spread the nett.
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** Enter a comment for the postings else the default comment of {{DataValue|Spread}} plus the purchase ledger number of the posting will be used.
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* Manually enter an amount against each month.
  
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* Pressing {{KeyPress|ESC}} and {{KeyPress|Accept}} will perform the posting.
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Once you have selected the periods press {{KeyPress|Escape}} and {{KeyPress|Accept}} to perform the posting.
  
 
== See also ==
 
== See also ==

Latest revision as of 12:44, 7 November 2023

Summary

The following article explains how you spread the nett value of a purchase invoice over a range of months.

Where you are billed in advance e.g. Rates or Insurance, this option allows you to apportion costs and overhead values to your P&L into the period they relate to.

This option should not be used to process staged payments. This is only for spreading the nett value of an invoice.

More Information

When spreading an invoice the following processes will occur:

  1. The total Nett will be Debited to your specified Purchase Centre and linked Nominal centre.
  2. The total VAT will be Debited to the Z999 VAT Control Nominal centre.
  3. The Invoice total will be posted to Credit Z993 Creditors Nominal centre

These postings will be immediately visible within Nominal review using preview mode and subsequently will be posted to the Nominal as part of your month end process.

  1. An automatic journal entry will be posted immediately to Credit the Purchase Nominal centre and Debit the Spread Control Nominal centre (by default this will be Z990). This will be dated to match the invoice date.
  2. Automatic journal entries will be posted immediately to Credit the Spread Control Nominal centre and Debit the Purchase Nominal centre. These journals will be dated the first of the months specified when choosing over which periods to spread the invoice.
You should not use this option if you are intending on completing the payment details whilst posting the invoice. You should post and spread your invoice then process your payment using Purchase Ledger Payments.


You are now presented with the Nominal Postings Spread window, and from here you have a couple of options.

Specify the Control Account

By default the control account will be Z990 - Suspense but you may change this if you wish.

  • Press <F7> to amend the control account which will be used to hold the balance on the balance sheet.
    • Enter the Nominal Centre to use as the control account else the default centre 'Z990' will be used.
You will not be able to amend this once the posting has been accepted.

Specify the Comment

By default the comment will be the comment 'Spread' plus ledger number of the purchase invoice. You may change this if you wish to ensure you can easily track the postings through your nominal.

  • Press <F7> to amend the comment.
  • Press the down arrow key to move to the "Comment" field,
  • Overwrite the default comment then press <Enter>.
You will not be able to amend this once the posting has been accepted.

Choosing the periods

Using one of the options below, select which months to spread the invoice across and the values per month.

  • Press <Alt+F5> to auto allocate the nett invoice value over a twelve month period from the date of the original posting. Press <F2> to evenly spread the nett.
  • Press <F5> against each month to spread nett invoice value over. Press <F2> to evenly spread the nett.
  • Manually enter an amount against each month.

Once you have selected the periods press <Esc> and <Accept> to perform the posting.

See also


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Keywords AND Misspellings
spread, spreading, purchase, invoice, posting, council tax, insurance, rates
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