Spending Money


When I am entering receipts for a item I have purchased, do I put in the total including the VAT.
I was told by my accountant that I should only enter the net amount and that the printout should show the net amount and the VAT amount and the Total.

At the moment when I view a transaction it shows the total and the VAT amount but not the net amount.

This will depend on your local laws. If VAT is a tax to be paid by you as the end user, and there is no method of recovering the tax, it is simply part of the purchase price of whatever you bought. So enter the tax-inclusive amount.

If VAT is recoverable under your tax laws for some reason (small business stimulus, special category of equipment, or something), add it as a line item allocated to a separate expense account so you can report it on your tax filing.

If VAT you pay can be offset against VAT you collect from others, select the proper tax code and mark it as tax-inclusive and Manager will post the amount to the Tax payable account. Or mark the unburdened price as tax-exclusive, mark the tax code, and Manager will add it for you.

There are many discussions of VAT on this forum. Search for them.

Sorry for the confusion but I am not sure what you mean, could you show me an example.

The VAT that I have paid on Purchases I can offset it against the Sales VAT, and I will either receive back or pay the balance at the end of the quarter.

Sorry, I’m not a good source on VAT. I don’t use it. But have you read relevant Guides? Look here. And have you searched the forum?

When entering VAT transactions you can enter them as either Tax Inclusive or Tax Exclusive
Tax Inclusive means that you enter the Invoice total and the tax amount is deducted by Manager
Tax exclusive means that you enter the Invoice net and the tax amount is added by Manager

Clicking View for any invoice will show details

And this is ALWAYS how I check the invoice I’ve entered is correct:

  • view the final invoice and check the tax amounts are correct.