RECORDING A SUPPLIER INVOICE

Transcription

1 RECORDING A SUPPLIER INVOICE This module contains the following topics: Entering a supplier invoice (bill) in Xero Recording a repeating bill Applying a credit note Recording payment of a bill ENTERING A SUPPLIER INVOICE (BILL) IN XERO In Xero, supplier invoices requiring payment are referred to as bills. A parish may choose to record a bill in Xero when payment will be made immediately or at a later date. Recording the transaction as a bill, rather than as a Spend Money transaction, ensures that the amount will appear in the Bills you need pay area on the Dashboard. Scheduling bills for payment on the due dates can assist parishes to carefully manage their cash position. To enter a bill: 1. Click the Add icon, then select Bill from the drop down menu. 2. In the To field, enter the name of the supplier that is to be paid. 3. Enter the invoice date as shown on the invoice document in the Date field. 4. Enter the date payment is due in the Due Date field. Remember, you can use shortcuts to enter dates. For example, type +30 in the Due Date field to add 30 days to the date entered in the Date field. 5. Enter the invoice number as shown on the supplier invoice in the Reference field. 6. Click on the document icon to attach a copy of the invoice as the supporting document for the transaction. 30/08/2017 3:53 PM Parish Xero User Guide Page 1

2 7. In the Amounts are field, select the tax setting that describes how GST is applied in invoice. Select Tax Exclusive to add the tax to each item amount or select Tax Inclusive to indicate that each unit price already includes GST. Note that each item will show as tax exclusive when the invoice has been approved and Xero automatically splits out the GST component for reporting. 8. If you have set up inventory items for this supplier, click on the Item field, then select the relevant inventory item. If inventory items have been set up, the Description, Unit Price, Account and Tax Rate defaults will automatically populate the line. 9. Where Items have not been set up, enter a description for the item purchased in the Description field. 10. Enter the quantity of the item purchased in the Qty field. 11. Enter the price of the item in the Unit Price field. The price of each item can be a positive, negative or zero amount, as long as the total bill amount is not negative. 12. Click on the Account field, then select the ledger account where the purchase is to be coded. 13. In the Tax Rate field, select the relevant GST setting for each item. This will be required only if you've selected Amounts are Tax Exclusive or Tax Inclusive). 14. Select the relevant option in the Tracking fields, if applicable. 15. When you are satisfied that the line item details, GST subtotal and invoice Total rare correct, click on the Approve button to approve the details of the bill. The bill is now saved in Xero and ready for payment on the due date. 30/08/2017 3:53 PM Parish Xero User Guide Page 2

3 RECORDING A REPEATING BILL Xero allows users to create a template for bills that are received regularly. With a template implace, Xero automatically creates and saves transactions as a draft bill ready for your approval. All you have to do is approve the draft and then record the payment. To create a repeating bill using a blank template: 1. Go to the Purchases screen, then click on the New button. 2. Select Repeating bill from the drop down menu. 3. Select how often this bill is to be repeated by selecting the relevant the option in the Repeat this transaction every area. 4. Enter the date of the first instance of this repeating bill in the Bill Date field. 5. In the Due Date area, enter a number in the Due field and select an option from the drop down menu to describe when each instance of the repeating bill will become due for payment. 30/08/2017 3:53 PM Parish Xero User Guide Page 3

4 6. In the End Date field, enter the date when the repeating bill should cease to be used. Where the End Date field is left blank, the repeating bill will remain in use indefinitely. 7. Check the Save as Draft check box if each instance of the repeating bill requires further approval prior to posting. Select this option if your business process required each transaction to have separate approval or if the details of each instance will vary and you need to edit each instance prior to approval. 8. Check to Approve check box if each instance of the repeating bill is to be approved immediately for payment. The bills will show on the Awaiting Payment tab. 9. Enter the details for each line of the repeating bill. 10. Click the Save button to record the repeating bill template. APPLYING A CREDIT NOTE Add a credit note to reduce the amount owed to you by a customer, or that you owe to a supplier. A credit note remains in Awaiting Payment until it has been fully applied to an invoice or bill. Credit notes can be added in 3 ways in Xero, depending on how you record the credit. You can: 1. Add a credit note directly to an existing bill 2. Add a new credit note to a supplier balance To apply a credit note to a supplier bill: 30/08/2017 3:53 PM Parish Xero User Guide Page 4

5 1. On the Purchases screen, click New then select Credit note from the drop down menu. 2. Enter the details of the credit note, using same method as entering the details of a supplier bill. Where the credit note will be applied to reduce the amount of a previously recorded supplier bill, ensure the same Account is selected. 3. Click the Approve button to save the credit note. 4. Next, to allocate the credit balance to an unpaid invoice(s), enter the credit amount to be applied in the Amount to Credit field or click Cash refund to record the credit as an unallocated amount. 5. Click the Allocate Credit button to apply the credit balance. 30/08/2017 3:53 PM Parish Xero User Guide Page 5

6 6. Alternatively, open a credit note transaction, then select Allocate Credit from the Credit Note Options drop down menu, then complete steps 4-5 above to allocate the credit note amount. RECORDING PAYMENT OF A BILL A bill record in Xero should be marked as paid on or before a payment is made by cheque or through ANFIN online. Recording the bill as paid means Xero can easily match the payment and bill during the bank reconciliation. Routinely recording payments in Xero prior to releasing funds from the bank can also reduce the risk of making duplicate payments as the status of the bill can be confirmed in Xero before the payment is made. To record payment of a bill: 1. Go to Accounts, then select Purchases from the drop down menu. 2. Click on the Awaiting Payment tab to see a list of all unpaid bills. 30/08/2017 3:53 PM Parish Xero User Guide Page 6

7 3. To change the status of a bill from Awaiting Payment to Paid, click on the bill you wish to update. 4. In the Make a payment area, complete the Amount Paid and Date Paid fields. 5. In the Paid From field, select the bank account used to make the payment from the drop down menu. 6. Enter a payment Reference (e.g. cheque number), if required. 7. Click the Add Payment button to change the status of the bill in Xero from Awaiting Payment to Paid. 30/08/2017 3:53 PM Parish Xero User Guide Page 7