The Cash Expense Batches function in AccountsPrep offers users the opportunity to upload expense records/invoices including tax amounts. This article will provide an overview of this function, some key things to remember, and best practices for use with the software.
AccountsPrep integrated companies.
The use of cash expense batches is particularly useful where the client is registered for VAT (or GST or Sales Tax) and you need to record the tax amounts for reporting or tax return purposes.
Key Things to Remember
We purposely do not offer the ability for accounts payable/receivable functionality. Our application is all about fast write-ups for clients who don't operate their own creditors/debtors ledgers (via accounting software) as such.
Instead, accountants will generally 'wash' these entries through a creditors account in current liabilities against various payments posted. These are then usually included in an adjusting journal entry at year end to bring the figure in line with outstanding invoices at the year end date.
It all depends on the client as to whether or not it is necessary to use this entry type and how you use it.
Uploading Cash Expenses Batches
To upload Cash Expense Batches, please do the following:
Click on the Accounting dropdown menu, located on the AccountsPrep navigation bar, and select Cash Expenses.
Select Add Cash Expenses.
You will then be brought to the Cash Expenses data import page, where you will have 3 import options to choose from:
Use AutoEntry Purchases capture for invoices uploaded and processed in your AutoEntry Purchases folder.
Import data using a CSV file, we suggest you do it this way using our simple template within this option. In this option you must also select whether the values entered in the 'Amount' column are tax inclusive or exclusive. You may change this option later when in the entry screen itself, and it will recalculate it for you.
Manually entering the data using the final option.
Some Additional Notes on Manual Entry
Total (credit) balance posting account is set from Settings > Financial Settings and simply indicates where the total or gross values for each entry line will be posted.
It is possible to change this per individual expense batch entry
Users tend to post these to some kind of creditors or accounts payable account in current liabilities where they may also post relevant payments from bank accounts.
Tax inclusive amounts (checkbox) indicates how the tax amounts are calculated in the lines below. Click it to see the difference in how it calculates tax/net amounts.
If unchecked, the 'Net' cell becomes the editable field (amount entry field) and the tax is calculated on this amount (i.e. amount entered is exclusive of tax). The 'Total' cell will be locked in this case.
If checked, the 'Total' cell becomes the editable field (amount entry field) and the tax is calculated as included in this amount (i.e. amount entered is inclusive of tax). The 'Net' cell will be locked in this case.
Tax rates are set and can be added/edited in Settings > Financial Settings.
You may enter your own tax value (with no % calculation) by selecting O/R - Override (allow manual entry) on any line.
Account posting for each amount per line works as follows:
Net amount will be posted to the account selected from the Net (debit) Account dropdown for that line.
Tax amount will be posted to the account set up in Settings > Financial Settings for Account designated for tax on expenses.
Total amount will be posted to the account selected above for Total (credit) balance posting account.
See the Taxes Report help guide for information on how you can view breakdowns of these taxes for specific date ranges etc.