Adding a purchase made by check (to a vendor without an AP account) involves debiting one or more expense/asset accounts and any applicable tax accounts, and crediting the bank account on which the check is drawn. With NV2, you don't have to be concerned with debits or credits when entering a purchase made by check. You simply specify the bank account you are using, and the details of the items you are purchasing. Trade taxes, if applicable, are calculated and added automatically.
Purchases made by check can be added to the Purchase Invoices Journal, or they can be added directly to the bank account. When you add a purchase to the Purchase Invoices Journal, postings are made automatically to the bank account, to the expense/asset accounts that correspond to the items purchased, and to any applicable tax accounts. When you add a purchase directly to the bank account, postings are made automatically to the corresponding expense/asset and tax accounts, and a journal entry is created in the Purchases Invoices Journal.
The choice of entering purchases made by check in a journal or in the bank account is completely up to you; the end result is identical either way.
Important! In order for trade taxes on purchases made by check to be calculated correctly, you must first set up the default trade taxes for purchases (see Trade Tax Settings for Purchases for more information). However, you can always edit tax amounts on purchases (e.g. special circumstances for a particular purchase that affect the tax calculation).
To add a purchase to the Purchase Invoices journal:
Click the Purchase Invoices Journal (NewViews/Journal/Purchase/Purchase Invoices) in the NV2 Database Explorer.
If the right window is not the Transactions Explorer window, click the window list button at the left of the title bar that reads /JOURNAL/PURCHASES/PI and choose Transactions Explorer.
Press <Alt+E+A> or issue the command Edit>Append to add a new purchase. (NOTE: The line number is generated automatically.)
Enter the purchase date (press <F3> to select), comment (usually the vendor name) and reference, in the Date, Comment and Ref# fields, respectively.
In the Vendor field, enter the bank account name (type the account name or press <F3> to select). The bank account description is filled in automatically. Do not enter anything in the Net, GST, PST or Total fields, since they are generated automatically.
Activate the transaction detail table by pressing <F6>.
Press <Alt+E+A> to add a purchase item. Enter the account name for the item (type the account name or press <F3> to select) and the item description. If you are tracking quantities for the item, fill in the quantity and rate (if it does not appear automatically) and the amount will be calculated automatically. If you are not tracking quantities, fill in the net amount for the item. Taxes are calculated automatically, as is the total amount.
Repeat the previous step for each purchase item.
To add a purchase to the Bank Payment journal:
To add a purchase to the bank account:
Click Bank Accounts (NewViews/Account/Bank) in the NV2 Database Explorer.
Activate the bank account to which the purchase is to be added, then press <F6> or click anywhere in the bank account ledger (middle pane).
Press <Alt+E+A> or issue the command Edit>Append to add a new item to the ledger. (NOTE: The line number is generated automatically.)
If the Purchase Invoices journal (PI) is not specified in the Journal field, activate the Journal field and press <F3> to select the Purchase Invoices journal (double click to select the journal name). NOTE: You can preset the Journal field using the Edit>Default Value>Set command.
Enter the purchase date (press <F3> to select), reference and description (usually the vendor name), in the Date, Reference and Description fields, respectively. Do not enter the amount, since it is generated automatically. Leave the Cross Account field blank as well.
Activate the transaction detail table by pressing <F6>.
Press <Alt+E+A> to add a purchase item. Enter the account name for the item (type the account name or press <F3> to select) and the item description. If you are tracking quantities for the item, fill in the quantity and rate (if it does not appear automatically) and the net amount will be calculated automatically. If you are not tracking quantities, fill in the net amount for the item. Taxes are calculated automatically, as is the item total amount.
Press <F4> to return to the Ledger Explorer window.
Repeat steps 3 - 8 for each purchase.
If you want your purchases made by check to stand out, (e.g. in order to quickly identify trends with respect to items being purchased from vendors without an AP account), you may want to add a separate journal just for this type of purchase. See Adding Journals for more information.