To access Purchase Ledger, you can click on Purchase Ledger on the left navigation toolbar where there are options to do Journals, Recurring Invoices, Payments, and Adjustment and you can access Suppliers. It has been introduced to have a full creditor’s ledger.
Under this section, you can add your supplier’s list, post-purchase invoices, and pay invoices. Each entry posted automatically updates the nominal ledger and helps to build the practice accounts position.
To add a new supplier, click into the Supplier section and select the New icon, right-click and new, or file and new in the top left. Once done, the following screen appears.
As with the Fees Ledger and the creating of clients, simply complete the standard data setup for the supplier and click Save & Close.
Posting Purchase Invoices
Click the Invoices section to post-purchase invoices. This section allows you to post the day-to-day invoices for the goods and services the firm has purchased from suppliers. It also allows you to post linked purchase invoices. If your firm has purchased something on behalf of a client, the invoicing routine in Drive allows you to allocate this cost to a client WIP ledger as you post the invoice.
To create a new Purchase Invoice, select Invoices from the Purchase Ledger menu. Select the New icon from the Drive toolbar. Alternatively, you can right-click on the screen and select New from the pop-up menu.
The Purchase Invoice has a number of mandatory fields that need to be completed in order to save the transaction in the system.
Invoice Date: The Date the Invoice is posted to DRIVE
Invoice Period: The Period is based on the Date selected in the Date field. This allows for future postings to be made also.
Invoice No: The invoice or document number you wish to use for your Invoice. (If Auto, see purchase setup for more information)
Ref. No: Not mandatory, you can enter your own reference.
Supplier: Select the Supplier the invoice is associated with.
Net Amount: The Net amount of the invoice – this amount can be split across a number of lines if there are different analysis codes or VAT codes. The nominal analysis code and the VAT code will be automatically picked up from the Supplier record if they have been entered as defaults (under the Account Setup tab of the Supplier).
Once you have inputted all the necessary information, select the Save & Close Icon. Use the Save & New icon if a further invoice is to be posted. The Purchase Invoice will be displayed in the Purchase Invoice listing.
Purchase Invoices with Linked Outlay
Drive allows you to recover purchase invoices received on behalf of clients by recording linked outlay. On entering the purchase invoice information, check the tick box in the Linked Outlay column (found on the Nominal Analysis) at the end of each line you wish to recover.
Once you tick Linked Outlay, the Outlay Allocation tab appears, and the Analysis Code changes to the Linked Outlay Control Account as set up under Tools/Settings/Nominal/Control Codes.
Select the Outlay Allocation simply by clicking on the Tab. The Outlay Allocation will now be displayed.
There are a number of fields that must be completed for the linked outlay to be saved.
Client: Select the Client Code to the outlay is linked to. The Client’s Name will be displayed.
Job: Select the Job the outlay is to be allocated against.
Cost Centre: Select the appropriate Cost Centre (or accept the default).
Staff: Select the Staff member associated with the outlay.
WIP: Choose the WIP analysis outlay code
Amount: The Amount you wish to allocate against the client.
If more than one Client or Job is being allocated, repeat the process above until the total amount equals the Invoice amount. On saving the purchase invoice the WIP ledger is updated with the linked outlay and these amounts can be recovered by billing from the WIP ledger as usual.
Purchase Ledger Reports
There are several Drive reports available for the Purchase Ledger. You can find these in Drive Desktop > Reports > Supplier Reports.
To run a report, double-click and use the pop-up window to input your information before selecting Preview or Print.