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A receipt can be posted within the Fees Ledger to record that the practice has received money from a client. For example, a cheque for £200 can be posted as £200 receipt.
The receipt can be matched to an invoice to show that the invoice has been paid. For example, an invoice can be sent to a client for £1000 requesting payment for work completed. At this point the client is a debtor as they owe the practice money. The client may then send a cheque for £1000 which can then be recorded in the Fees ledger as a receipt. The client balance is now zero. To determine which invoice the receipt is paying the receipt must be matched to the invoice.
Posting a receipt
A receipt can be posted from within Adhoc posting or Batches within the Fees Ledger. Click here for the help topic for posting receipts.
Regular receipt payments can be made using Standing orders. For example, if a client pays £100 cheque on the first of each month.
Receipts and VAT
VAT is calculated on invoices for practices that account for VAT on invoices, and not on the receipt.
For practices that are cash accounting (by either posting invoices as proforma or are a low turnover firm) VAT will be liable on the receipt. This will produce a VAT Receipt.
There are two ways of declaring VAT on receipts:
1. Match the proforma (or invoice for low turnover firms) to a receipt.
This method is typically used when the practice sends out an invoice and receives a receipt at a later date. The receipt is then matched against the invoice and the VAT is then liable.
Click here for the nominal movements for Low turnover firm.
Click here for the nominal movements for Proforma.
2. Account for VAT on the receipt
This method is typically used if the receipt is received before an invoice posting is raised. For example, if the practice received standing orders from a client. To account for VAT on a receipt place a tick next to Account for VAT on the receipt posting and select the required VAT rate.
Click here for nominal movements for Low turnover firm.
Click here for nominal movements for a proforma
Producing a VAT receipt document
For practices that are cash accounting a VAT receipt document can be produced once the VAT has been declared (see above).
Click here for further information on the VAT receipt document
Nominal Codes
The Fees Ledger keeps a nominal breakdown for each posting. This can be used to track movements and totals for postings within the ledger.
Click on the item below to view nominal postings by practice type:
Nominal postings for normal invoices
Nominal postings for low turnover businesses that post invoices
Nominal postings for business's that post proforma' invoices
Click here for details of practice types.