A scenario where you might need to split a transaction would be if you made one transaction at a service station to buy both fuel and food.
By using 'Split category/VAT':
- the Supplier remains the service station
- you can enter two or more Categories e.g. 'Fuel' and 'Working meals'
- you can enter two or more VAT rates e.g. '20%' for the fuel and '12.5% reduced rate' for working meals
- A retailer has a purchase invoice for £100.00
- The VAT charges are: £15.55
- One item on the invoice takes 20% VAT, and other items take 12.5% reduce rate VAT.
To categorise this transaction in Business Finance Assistant:
- Locate the relevant transaction on your 'Bank Transactions' page
- Select 'Split category/VAT' to add multiple VAT rates and categories to the same Customer or Supplier
3. Adding more items will increase the amount 'Still to review'
4. Manually deduct the amount 'still to review' from the total transaction amount:
5. Press 'Done' to save
Once the transaction is confirmed, this creates one expense receipt against the one supplier, with all of the different VAT rates and categories in it within your outgoings.
To check where it has appeared on your VAT report:
1. Click 'VAT Reports' from the menu
2. Filter the relevant dates, click on the VAT rate to view the expected £15.55