How do I Spread a Purchase Invoice?
Contents
Summary
The following article explains how you spread the nett value of a purchase invoice over a range of months.
Where you are billed in advance e.g. Rates or Insurance, this option allows you to apportion costs and overhead values to your P&L into the period they relate to.
 | This option should not be used to process staged payments. This is only for spreading the nett value of an invoice. |
More Information
When spreading an invoice the following processes will occur:
- The total Nett will be Debited to your specified Purchase Centre and linked Nominal centre.
- The total VAT will be Debited to the Z999 VAT Control Nominal centre.
- The Invoice total will be posted to Credit Z993 Creditors Nominal centre
These postings will be immediately visible within Nominal review using preview mode and subsequently will be posted to the Nominal as part of your month end process.
- An automatic journal entry will be posted immediately to Credit the Purchase Nominal centre and Debit the Spread Control Nominal centre (by default this will be Z990). This will be dated to match the invoice date.
- Automatic journal entries will be posted immediately to Credit the Spread Control Nominal centre and Debit the Purchase Nominal centre. These journals will be dated the first of the months specified when choosing over which periods to spread the invoice.
| You should not use this option if you are intending on completing the payment details whilst posting the invoice. You should post and spread your invoice then process your payment using Purchase Ledger Payments. |
- Go to " Purchase Ledger Purchase Ledger Postings".
- Post the purchase invoice in the usual manner.
- Move to the "Amount Details:" section, and on the "Spread inv." field, select 'Yes'.
- Click <Done> and <Accept>.
 | You are now presented with the Nominal Postings Spread window, and from here you have a couple of options. |
Specify the Control Account
By default the control account will be Z990 - Suspense but you may change this if you wish.
- Press <F7> to amend the control account which will be used to hold the balance on the balance sheet.
- Enter the Nominal Centre to use as the control account else the default centre 'Z990' will be used.
| You will not be able to amend this once the posting has been accepted. |
Specify the Comment
By default the comment will be the comment 'Spread' plus ledger number of the purchase invoice. You may change this if you wish to ensure you can easily track the postings through your nominal.
- Press <F7> to amend the comment.
- Press the down arrow key to move to the "Comment" field,
- Overwrite the default comment then press <Enter>.
| You will not be able to amend this once the posting has been accepted. |
Choosing the periods
Using one of the options below, select which months to spread the invoice across and the values per month.
- Press <Alt+F5> to auto allocate the nett invoice value over a twelve month period from the date of the original posting. Press <F2> to evenly spread the nett.
- Press <F5> against each month to spread nett invoice value over. Press <F2> to evenly spread the nett.
- Manually enter an amount against each month.
Once you have selected the periods press <Esc> and <Accept> to perform the posting.
See also
