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Making a retention account.

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RETENTIONS

05 Mar, 2012 03:25 PM

Hello. I have Easybooks iPad ver 4.7.1.34

I need to do the following when I make a purchase:
If I make a purchase and enter it in purchases (say) for 1,000€ + 18% tax. No problem.
What I need to do is add an account that doesn't show up on the books, but will keep track of retentions I need to make by Spanish law. Would that be a "container" (intead of account)? In the example I would need to enter 150€ retentions, so the final bill payable is only 1030€. This is what I physically pay, but I must record the 1000 as sales and the 189 as VAT. So, in the same purchase I need to put a line with the 150 as a negative, which won't impact the sales nor VAT accounts (called IVA here) and so that I can have an end of year summary (as this must be paid to the govt.).

PS I tried making an account calling it "retetions" and setting it to "container" but it is not available when I am tapping in the purchase.

Hope you understand and can help. My accountant and I are very impressed with your product and want to convert all our customer to it/iPad, but we MUST sort out the retentions thing.

1. Support Staff 1 Posted by Admin on 06 Mar, 2012 09:49 AM

   

   I've attached a backup file of a business I created for you as an example.

   I don't know if this is what you want, but here's what I did.

   1. I created an account called Retentions as a creditor account (under liabilities).
   2. I entered a purchase as normal, linking the supplier with an expense account and included the VAT. This is the entry dated 4 March for 1000 + 180 VAT.
   3. I paid the supplier's invoice on 5 March from the supplier account, so with Account 1 set to the supplier, and account 2 linking to the bank account. The amount is 1030 because that's what you say you physically pay. I added a split to this payment, and set account 3 to the retentions account, with the amount 150.
   4. At the end of the VAT period (31 March 2011 in this business), I filed the VAT return. This shows a VAT figure of 180 owed to me, but I already have a retentions account showing 150. To balance this up, I added a final transaction for the total amount collected in retentions on 6 April, and transferred the amount into the VAT Due account. This then leaves a zero balance in retentions and a balance owed (to me because it's showing negative) of 30 in VAT due.

   This all works I think. See what you make of it, and perhaps check with your accountant to see if he/she agrees. You might be interested to know that if your accountant has a Mac, they can make use of our Online Sync service to work in a live copy of your accounts rather than needing to send backup files back and forth.

   All the best,

   Mathew

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2. Admin closed this discussion on 06 Mar, 2012 09:49 AM.

3. Admin re-opened this discussion on 06 Mar, 2012 10:04 AM

4. Support Staff 2 Posted by Admin on 06 Mar, 2012 10:04 AM

   

   Sorry, I closed the discussion too early there and forgot to attach the backup file for you to look at.

   Here it is.

   Mathew

   • Retentions.easybooks_backup 24.1 KB
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5. Admin closed this discussion on 06 Mar, 2012 10:04 AM.

6. Andrew Watson re-opened this discussion on 06 Mar, 2012 11:25 AM

7. 3 Posted by Andrew Watson on 06 Mar, 2012 11:25 AM

   

   That works, funny it's what i suggested to my accountant in the first place. Yes we know all about the Mac version and syncronising.

   Thanks!
   Andrew

   Sent from my iPad

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8. Admin closed this discussion on 07 Mar, 2012 10:20 AM.