Aff

Hello Estaq,

You will just need to show the money coming into the business by going to Money > Manage Money and filling in the Money in boxes on the left.

The account code will be donations or similar. You may need to make a new account code, which can be done by going to the guide below.

http://www.clearbooks.co.uk/support/guides/codes/adding-new-account-codes/

Vanish

Hello Vanish, Thanks so much for your help I will try and get back to you

Hello Vanish, Just to thank you for your help it does work. Also I will like to know how I can record a depreciation, prepayment and accrual in clearbook. Estaq

Hello Estaq,

The best way to report depreciation is to use our Fixed Assets feature. This lets you record assets on the system and let it automatically depreciate the asset on a monthly basis. Please follow the guide below.

http://www.clearbooks.co.uk/support/guides/fixedassets/fixedassets/

You may not need to make a bill for existing assets, you can just add them in manually.

For pre-payments and accruals, this will be done via a journal (in particular reverse on date journals if needed). You will need to know the relevant debits and credits when you are making your journal. The reverse on date journal removes it from one period but adds it back in the next so that the ledgers are recorded accurately.

This guide will help with that. http://www.clearbooks.co.uk/support/guides/journals/how-to-use-reverse-on-date-journals-for-prepaymentsaccruals/

Hope that helps.

Vanish

Hello Vanish, I try the Fixed asset feature but can't see the depreciation in profit/loss report and balance sheet it shows 0 balance. Also is it anyway to delete wrong transactions? or i have to reverse them through journal. Estaq

Hello Estaq,

You need to turn on the feature first and then there will be an option to auto calculate the depreciation based on the assets you have added.

Alternatively, you will need to use a journal to account for the depreciation manually.

Vanish

Hello Vanish, Thanks for all your support. I've got a serious problem and hope you will be able to solve it for me. We are Charity Organization and our main income is donations, the things my employee has treat those donation as sale revenue and when we go to profit and loss session the revenue shows Zero balance and i noticed that all the transactions appears in unallocated list under the sale Tab. How can I solve that problem

Hello Estaq,

You will need to go to those monetary amounts and then allocate the amounts to an invoice. You can make a bulk invoice for this and then match all the payments together to that one invoice.

Alternatively, you will need to delete the transactions you have and then re-enter them but NOT as trade debtors account code.

Vanish

Hello Vanish, Thank you very much i thought exactly the same.

Hi Vanish, Hope you well. This is just to ask how can i record the VAT receivable or payable depending on the balance on the VAT return at the end of the accounting period. Also how can i record the salary paid to employee. step by step please.

VAT https://www.clearbooks.co.uk/support/guides/settings-2/vat-2/completing-a-vat-return/

Wages just create a bill in the employee name analysed to salaries.

How about recording tax collected on salary

Create a bill in HMRC's name. Employers NI should be analysed to Employers NI, income tax and/or employee NI deductions can either go to PAYE or just salaries (I put everything to salaries, see no reason to split out net wage, employee NI and tax on the P&L).

Hello Estaq,

If there is more than one employee, you may need to use Open Payroll. This will be required if you are a PAYE employer and pay PAYE on behalf of your employees. You will need to send HMRC RTI as this is a requirement.

If this is not the case, you will continue as Kevin has mentioned.

Vanish

Not sure if i'm reading that right but just to clarify, if you've got a PAYE scheme in place you'll need to make RTI submissions no matter how many employees you have.

regarding the Reverse on date journals for prepayment and accruals they is one example given in the guide on step 3 which is confusing to me. They record a 500 prepayment on insurance by debiting insurance and by crediting Trade creditor. From my point of view when making the payment for the insurance we will already debit insurance and credit bank. For argument sake we paid 1500 insurance and within that 1500 they is 500 prepayment. The way i would treat that information will be: Debit: Insurance 1500 Credit: Bank 1500 And put this as reverse on date: Debit: Prepayment 500 Credit: Insurance 500 Please if you can have look in the guide on step 3 and explain me why clearbook: Debit: Insurance 500 Credit: Trade creditor 500 For the reverse on date transaction.

If you've prepaid an expense the journal would be:

CR Expense account DR Prepayments (other debtors)

Yes i know but clearbook didn't do it like that

https://www.clearbooks.co.uk/support/guides/tools/journals/how-to-use-reverse-on-date-journals-for-prepaymentsaccruals/

They're showing an accrual in step 3, the error is the paragraph above where it says prepayment.

Hello Kevin,

Does Step 3 need to state it is an accrual?

Could I just change the debits and credits on the screenshots to make the amounts and figures correct.

Vanish

You could, you'll also need the DR going to trade debtors though as opposed to trade creditors as it's currently shown (or have a specific Prepayments code under other debtors as I prefer personally).

I think you'll need to adjust step 4 too so it ties in with the above.

Hi How can I record a physical donation received (clothes, fridges, tables etc) for sale to raise money for a charity

Hi Estaq,

The two ways I can think of recording this is to either simply enter these as stock items, although this would record them as physical assets and would not show them as donations.

An alternative could be to enter them as purchases with a £0 price and no VAT with the description as donation.

Many Thanks

Chris

Hi This is just to mention a problem I'm having to record my opening balances for a new accounting period. When I record the bank balance and hit the update button it shows in the list of balances but at same time shows a negative figure of the same amount in retained earning. When I delete that negative figure and enter the other balances I can see that the total is balanced but when I hit the update button the system keep telling me account is unbalanced even though I could see from the screen that it is balanced. Please if you can help me finding solution for this problem

"The opening balance sheet does not balance i.e. the sum of the Debits column does not equal the sum of the Credits column." That's what the system is telling me when I enter my opening balances even though I could see from the screen that it's balanced. I need help

Hi Estaq,

As the system uses double entry accounting it is necessary to have a credit and a debit for every transaction. This is why it will have appeared on both sides and the reason why it did not work when only with a credit. Please try to enter the balances and crediting something and debiting another entity and this should work for you.

Many Thanks

Chris

I can't just credit and debit things for no reason do you think it won't affect my account in the future?

even when i do that it still giving the warning message that it's not balanced

If you want to enter a balance into other balances it is necessary to have both a debit and a credit, otherwise it will not work. If you have any further concerns, please can you email contact support with a screenshot of the error message you are receiving?

Chris

Sorted thanks

Hi everyone I need to do a prepeyment for an invoice that contain VAT, should I take the VAT into account when creating the journal?

Yes you should, Estaq. But it will be on a separate line in the journal.

I may be wrong but to the best of my knowledge you only accrue/prepay the net amount, ignoring any VAT - that's how I would personally handle it anyway. I'd only ever account for VAT as of the tax point.

I have been speaking with my colleagues and, as this is a pre-payment, it should have VAT included as if you were to create an invoice that would have VAT on it too.

I will continue to check on this.

Chris

Are you talking prepayment as in the client has made an advance payment on account? If so, I would agree.

Having my accounting head on, I was automatically presumed Estaq was talking in terms of year-end accrual/prepayment adjustments in which case I don't believe VAT should be included.

In my mind, Kevin, I was thinking this referred to a prepayment of an invoice/bill. But, Estaq, if you could confirm, that would be a great help!?

Chris

Hi Guys, Sorry I was away here is the whole thing. I'm paying a Rent of £1680 VAT included every 11 of the month and my accounting period is 01/05/201X - 30/04/201Y. The last payment will be covering April this year and May next year. I need to know how to treat the payment as the bill is VAT included

Ok, so it's a year-end prepayment.

If you're VAT registered you don't include the VAT, if you aren't then you do.

I see thanks

Hi Guys, Any specific manner to record EC transaction for VAT purpose? Or I need to do everything manually.

Hi Estaq,

If you go to Settings > Organisation > Toggle Features > VAT & Bank Import Tool > Reverse charge & EC Rates and tick this option this will enable you to add the correct VAT rate as this will allow you to choose whether something is inside or outside EC and whether it is a good or a service.

I hope that this helps

Chris

Hi, I am taking some one on my payroll, they will be working less than 16 hours a week so I believe there are not any NI contributions and/or tax liabilities due on either the employer or the employee. However, I would like to have a detailed answer about how to deal with ''RTI'' and any other information required to setup the RTI and reporting responsibilities to the HMRC.

Your immediate response would be highly appreciated.

Thanks,

Hi Estaq,

The number of hours alone does not determine whether or not you pay NIC's etc. It is dependent on the amount earned too. There is actually nothing different you need to do for them. You simply set them up as you would anyone else with the number of hours worked stated. The system will do the rest for you by working out what the correct rates should be in their case.

Chris

Hi,

Thank you for your instant reply. I think what I am more concerned about is I myself have never done this before (set up an an employee), but this time around I am doing it on my own so just wanted to make sure that everything is alright in terms of reporting to HMRC.

The employee will be getting minimum wage rate (£6.50) that is approximately £97.00/week, so I assume once I key in all the details on the payroll (add employee) the software will do the rest for me in terms of FPS and EPS etc? Please correct me if I am wrong and thanks once again in advance.

Regards,

Hi Chris,

Thank you very much for your help. Have a good day.

Estaq,

You are welcome, Estaq. I wonder whether you would be interested in one of our training offers as these can be far more in depth and face to face you can always ask the specific questions you wish us to address. If you would like to have a look at the following link I believe it may contain some useful information: https://www.clearbooks.co.uk/resources/training/business

Have a nice day too.

Chris

Hello Chris,

The issue I am having now is that I had created a VAT return for quarter ended November 2014 for which I received the payment from the HMRC in December. However, on my home screen it says VAT due from HMRC building up and includes VAT returns submitted for previous quarters as well all of which have been received. I have some how shown them as receivables balances cleared out in the months I received the amounts.

The question is how could I pay off that receipt and get rid off it from the home screen and show this as my income.

Regards,

Do you mean that you paid the money to HMRC or that they have paid you? If it is a VAT return it is normal for you to be paying them.

The HMRC paid us the money on the net output VAT. I have received the money now, since as a Charity we do not make much VAT charged sales but do make a lot VAT purchases on which we pay VAT. Therefore, we receive the money from HMRC.

Thanks,

In that case you have to create an invoice from HMRC to code it to VAT payable and that will remove the excess.