Registering A Payment that Combines Multiple Invoices for 2 Separate Clients

There are some situations where creating a Branch for a customer does not provide the required functionality to be able to invoice the client under one client account. An example of such a situation is when the client, in this case Widgets Ltd, is present in different countries using different currencies. Widgets Ltd is based in Malta (currency: Euro) and has an office in the UK (currency: Pound Sterling GBP).  In this case, two customer accounts must be generated (see figures below).

Widgets (Malta) Ltd
Widgets (UK) Ltd

On October 1st, an Invoice was issued to Widgets (UK) Ltd to the value of £75.

Widgets (UK) Invoice

Note that the above invoice was issued in Pounds Sterling and the rate of exchange was 1.4000 which makes it equivalent to €105.

On October 8th, an Invoice to Widgets (Malta) Ltd was issued with a value of €100.

A few days later, Widgets (Malta) Ltd effected a bank transfer of €205 to settle both invoices.

This poses a problem because although in reality both clients are the same entity, they are registered as different clients in our system. The solution is to use the Deposit function found under the Banking and General Ledger tab.

In our example, the money was deposited in our Merchants Bank Savings account. We will split the payments and declare one payment of €105 for the Widgets (UK) Ltd invoice and €100 of the Widgets (Malta) Ltd invoice. Here is how the deposits were registered:

The final step required to complete the transaction is to allocate the amounts to the relevant invoices.  Click on Allocate Customer Payments or Credit Notes under the Sales tab and from the drop-down list select each company in turn. Click on the allocate symbol at the end of the entry and follow the allocation process as usual.

Checking the Customer transactions for both clients will confirm that the bank transfer has been properly registered.

And the Bank Deposit Record …

Creating a Sales Order

Creating a Sales Order

Creating a Sales Order requires that there are items and clients recorded in the system. It is possible to create both clients and items on the fly during Sales Order entry, however, it is suggested that clients and items are entered beforehand.

Click on the Sales tab and then on the Sales Order Entry.

Fill in the form (see example above) and click Place Order.

The screen that follows provides a number of choices. For example, clicking on the Print This Order link produces a PDF of the Sales Order.
This concludes the creation of a Sales Order.

Modify Sales Order

To modify a Sales Order start at the Sales tab and then click on Sales Order Inquiry

Locate the Order Entry to be modified and click on the pencil symbol.

Modify the entries as required. In the above example the quantity was changed to 2.
When all changes are done click on Commit Order Changes
At this point a screen with options is shown.

Delete a Sales Order

Follow the process shown in Modify a Sales Order above to locate the sales order in question.
Click on Cancel Order and the Sales Order will be deleted.

Configuring the Tax Setup when using Clever Accounting

Here is a short explanation of configuring the tax setup in Clever Accounting:

Under the Setup Tab there are three choices for Taxes:

(i) Taxes;
(ii) Tax Groups and
(iii) Item Tax Types

i)    Taxes contain all the different rates we need to use to comply with VAT law. Below is an example for Malta:

TaxTypes (Malta)

ii) Tax Groups: In the case of Malta, we have two tax groups: Domestic VAT (for local clients) and Intra-Community & Non-EU Trade (for clients who are not charged VAT as they are not local). So our clients will have their TAX group set to one of the two entries. Note that the Domestic Group includes a number of VAT Types.

TaxGroups (Malta)

iii) Item Tax Types: This links the actual Tax to the Item. So in the example below the VAT @ 18% is only allowed the VAT(F 18%) entry.

ItemTaxType (Malta)

When we move to setting up Clients and Suppliers, we have to choose in which Tax Group they fall. For Malta we have two choices:

Customer Entry

Then we have to set the Item to the proper TAX to be charged:
Item Entry

This way, when you include an item to a client, it will be allocated the proper vat value.

When receiving items from suppliers outside of the Malta (in our case), VAT is automatically not added.

We hope you understood how the tax setup works. If you have any issues, please open a support ticket via Camem, our membership platform. To access Camem, login from here.

New Quick Start Video Tutorial

The beginning is always the hardest bit. That’s probably not always true, but it does apply to most accounting software. When starting to use an accounting package, you have to set up your company and tax details so that transactions that are entered are recorded correctly. With Clever Accounting we’re doing our best to make the beginning as plain sailing for you as possible.

Not everyone is familiar with how the process, from company setup to invoicing, looks like. So we’ve created a short 7 minute video that goes through this exact sequence. This way, new users will have a more complete idea of the initial steps they need to go through when using Clever Accounting.

The video is meant to be indicative rather than exhaustive. Certain topics such as taxes and payment methods are not covered as these shall be discussed in later videos.

We hope you find the video helpful and please leave your feedback in the comments below! This will help us improve and provide you with the best product possible.

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