Some items included on purchase invoices are for own-use / non business use. As these are charged on original invoice and paid as part of credit account I cannot omit these from entry: how do I enter these goods for own use so they do not affect total VAT and/or appear on end of year financial reports?
Typically you would have a special account (a liability or equity account created under Chart of Accounts) where you would allocate all expenses which belong to someone else.
If you want to get fancier, Manager has a concept called Capital accounts (see Guides | Manager) which is great for sole traders, trusts, partnerships etc. In case of capital accounts, you would allocate those expenses to capital account of specific person/organization.
See example:
In this case I’m allocating $25 to drawings of Bob Smith. Also see that I’m not using any tax code as you can’t claim VAT on private use but you already know that.
If I use a separate capital account as described, I do not understand how to account for VAT overpaid.
a) VAT included on supplier invoice (partly on purchases/partly on good for own use)
b) VAT will be paid to supplier to clear account
c) if I record at ‘no tax’ will there be a deficit in supplier balance?
If you are entering purchase invoice with amounts that are tax inclusive (which is turned on by default). It will make no difference to invoice total whether you use VAT code or not. Have you tried that?
Hello Lubos
I cannot do this in the purchase invoice, any help?
I have this issue. In my case, I have made it different because is a little more complex than here because I work in “manufacturing”, basically. I could include in the purchase invoice items that are for own use in capital accounts, like lubos said, but instead I include these items in my inventory because normally, I do not use all items for myself when I purchase something. Also, maybe there are items that I purchase for inventory that are not for me and in the end I still end up using some for myself or for promotions. Anyways, I purchase the product, allocate it in my inventory and then, whatever amount I’m using for myself, I discount it in the “inventory write-off” section. This way, if I use just part of the product I’m using for manufacturing, I still will have the remaining amount on my inventory. I hope this helps. I think it is the most appropriate way to do this, at least in my case, but every case is always different. Cheers!