I need to see Payee names to identify whether correct VAT code has been applied. I use Tax Transactions report for that.
Now I need to enter each transaction, see the payee name in Description field, enter it to Payee field, then only it appears on Tax Transactions report. That is incredibely inneffective.
Also, I could enter names manually after statement import before applying bank rules, but this would be the same as processing transactions manually, therefore also ineffective.
Any other solution to have cash based transactions report along with VAT tax code/amount, also will be welcome.
Not sure what you have in mind by saying this, but I do not understand why Bank rules form cannot be extended to automate Payee allocation. It can allocate account name, it can allocate Customer’s name from list, even bank statement import template has got Payee field, so what is stopping from making field for automated Payee allocation?
Perhaps I misunderstood you. I thought you were saying the imported bank statement did not contain payee names. While I would agree that is a poor bank statement, there are all kinds of different formats being produced by banks around the world, even when they are supposedly adhering to standards.
If you are referring to the ability to post a transaction to a specific customer or supplier through a bank rule, you can only do that for transactions involving Accounts receivable or Accounts payable, as those are the only accounts with subsidiary ledgers. If there is something recognizable in the description of the transaction that associates it with a specific customer or supplier, a bank rule can allocate it.
The thing to remember is that bank rules post transactions to accounts (or in the case of Accounts receivable/payable, subaccounts). They are not intended to keep lists of customer/supplier transactions.
Further, there are no lists anywhere in Manager for cash (meaning non-credit) transactions based on payees or payers.
Finally, the Tax Transactions report seems like a strange place to be verifying correct VAT codes. It doesn’t seem to have the necessary information for that. You would have to recognize the correct VAT based solely on a name. But that is my personal opinion.
Many accountants in UK do not require prime documents to identify VAT transactions, they use bank statements for that, they ask for only bigger invoices for purchases (dozens of invoices in thousands of transactions in my case). This practice for me also looks strange, but they do that. I personally use this statement to check transactions for errors, for example, if I see “Sainsbury” amont 20% of VAT, I must check this transaction, because, Sainsbury’s usually do not contain VAT.
I do not understand the source of your problem. Whenever I have done a bank statement import, the resulting transactions have a payee or payer. If the transaction was related to an invoice, a bank rule can be defined to allocate to a specific customer/supplier. And when I generate a Tax Transactions report, these appear in the first column after the date, along with any relevant transaction reference. In this example, the first transaction was a non-credit sale, the other two were by sales invoice:
So your real problem seems to be that somehow your imported transactions are being created without payees/payers. If that is true, you need to determine how unassigned transactions are making it through your import process. Based on your screen shot of Current Account transactions, it looks like that information is being included by your bank in the Description field. That should be good enough for a bank rule for invoices. But for cash payments, you will need to edit.
Yes, you are right, I missed that part somehow.
Bank statements made by bank are not very informative and they put Payee in one field with Description:
Therefore I need to separate that on excel or enter manually - both things are time consuming since I have got ~200 transactions a week and most of them will be required to be processed mostly manually (in excel or in manager anyway).
What could solve the problem, is the feature to assign Payee (or Contact) trough a bank rules.
Bank rules can be used to assign a) account, b) tax code c) Tracking Code, so it is just to add additional Payee (or Contact) field (as per my image above).
As you mention, this has nothing to do with invoiced transactions which are done trough AR/AP accounts.
