money in, money out, sales, purchases - whats the differance?

Money in/out first creates the payment and then that payment can be allocated to either an existing invoice/bill or prompt an allocation to a system-created invoice/bill.

Invoices and bills are created in Sales and Purchases. They need payments to be allocated to them.

It doesn't seem like you're doing anything incorrectly at the moment. Just remember that all invoices and bills need to have payments allocated to them and there are multiple ways to do that. Money in/out is one of them, explaining from a bank statement is another, Quick pay is yet another...

Hi Gary,

It is probably best to create a new account for that, but you should also get the advice of an accountant on where to add the account if you are unsure.

How to add new account codes

its our income tax refund (overpayment)

Gary, do you mean Corporation tax or income tax?

Thank you aran, iv successfully added the vat refund as u described under the vat control account. however when it comes to the tax refund, im putting it through the same but im struggling to choose which account to add it to. many thanks

or should they be entered as money in and then explain them as a refund?

thank you Aran, thats good to hear, i was worried I would have to restart everything. As far as our vat and tax refund being entered, what should these be entered as? (currently putting them in through sales but we were worried about being re-taxed on them if it is entered as invoices for money going in or will the fact that I have selected them to be exempt from tax suffice? many thanks lisa