Xero - tips and tricks

Dairyfarmerswife

Member
Livestock Farmer
Location
Shropshire
I marked the invoice as fully paid. Which it has been by the bank. This was by the HP liability account I created. So the original invoice is marked as paid and not coming up as money owed to the dealer.

I think inneed to put it against the HP liability account I created, but unsure how to do this. It doesn't come up as a debtor.
Each monthly payment should be coded to the hp liability account - where you would normally put fuel/feed etc, you should be able to select the hp account you have set up. If there's interest too then do two separate lines eg
Loan Repayment £100 //hp liability// no vat
Interest// £20// interest// paid// no vat
Total //£120

Paid from current account
I have a feeling there should be a manual journal involved too but I can't remember why. @Boysground might know.
 

Boysground

Member
Mixed Farmer
Location
Wiltshire
This is how I do it

Using the figures from the finance agreement

line 1. Total amount for machine + vat (p&m additions on my accounts
Line 2. Less total amount financed (no vat)
Line 3. Less trade machine +vat (p&m disposals)

Line 4 maybe a finance charge

This should balance the vat. I then input the finance payments to the HP account. Usually I set it as a recurring bill rather than a rule as I think it’s simpler.

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Boysground

Member
Mixed Farmer
Location
Wiltshire
Each monthly payment should be coded to the hp liability account - where you would normally put fuel/feed etc, you should be able to select the hp account you have set up. If there's interest too then do two separate lines eg
Loan Repayment £100 //hp liability// no vat
Interest// £20// interest// paid// no vat
Total //£120

Paid from current account
I have a feeling there should be a manual journal involved too but I can't remember why. @Boysground might know.

Ive never done a Journal, they always confuse me so I avoid them 😂

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Dairyfarmerswife

Member
Livestock Farmer
Location
Shropshire
i think you need to unmark it as fully paid, the liability is still yours even with the bank paying it in full.

This is how I do it

Using the figures from the finance agreement

line 1. Total amount for machine + vat (p&m additions on my accounts
Line 2. Less total amount financed (no vat)
Line 3. Less trade machine +vat (p&m disposals)

Line 4 maybe a finance charge

This should balance the vat. I then input the finance payments to the HP account. Usually I set it as a recurring bill rather than a rule as I think it’s simpler.

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As a manual journal? Yes I think that's how mine are done, I haven't done one for ages (you obviously buy more machinery than us 😉)
 

Chae1

Member
Location
Aberdeenshire
I just entered the self billing invoice in for the trade in under plant and machinery disposals. This has been paid and reconciled.

The total amount owe for the new machine including VAT. Marked as fully paid by HP HP liability account.

Haven't entered anything for bank interest and repayment plan yet.

Finance is through bank not dealer or manufacturer.
 

upnortheast

Member
Livestock Farmer
Location
Northumberland
Right, probably been mentioned on this thread already but can't find it. I'm trying to setup something for HP repayments.

I have found some stuff googling but kind of stuck now.

So I entered the invoice for the full amount of the machine. I setup a HP liability account in chart of accounts. After I entered the invoice I marked it as paid as full out of the HP liability account. So this should allow me to claim back the full VAT amount.

When it comes to reconciling what do I mark the payments too? Got a self billing invoice for the trade in and need to reconcile it. Also monthly payments for the machine coming out of the bank that I need to allocate. There will also be interest on bank loan so repayment amount will be greater than purchase price.

Also should there be VAT on my HP HP liability account?

Confused.com.
Have a look at post 697. I put up a screen shot of a van hp entry. You need to end up with the amount at the bottom equal to the 1 st payment. Which will probably be vat + arr fee + rfl if it's a vehicle + 1st repayment
 

Boysground

Member
Mixed Farmer
Location
Wiltshire
I just entered the self billing invoice in for the trade in under plant and machinery disposals. This has been paid and reconciled.

The total amount owe for the new machine including VAT. Marked as fully paid by HP HP liability account.

Haven't entered anything for bank interest and repayment plan yet.

Finance is through bank not dealer or manufacturer.

Doesn’t matter who the finance is from, interest can be another line, think I have a loan interest code.

Have you paid some of the total amount for the machine with the trade in money?

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Boysground

Member
Mixed Farmer
Location
Wiltshire
This is how I think I would do it

Remove the payment for the deposit so it then un-reconciles.

To the bill for the machine add another line-deposit paid (in p&m purchases) this will be a negative and vat free

Then go to the reconciliation of the deposit payment that you unreconciled, press match you should then be able to find the bill for the machine, if you then split the payment for the deposit amount you can reconcile that payment from the statement.

The remainder should be the vat portion you pay and maybe the 1st instalment depending on your arrangement with the bank

This should work but I’m half asleep so perhaps somebody will correct me.

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Boysground

Member
Mixed Farmer
Location
Wiltshire
I am confusing myself today so have a question for the masses. I have an account for one of my feed suppliers, the price is good and part of the agreement is 7 day payment by DD this is well into next year, thats not a problem and I am happy. My brother has gone shopping and now has a different product coming from the same supplier but its 28 days credit and crucially a different account number. I am already confusing myself with different accounts and one supplier. So the question is can I set up a 2nd account under one suppliers name on Xero or is it more sense to create another Supplier with say No2 Account in the name?

I suspect I will end up going with the 2nd idea but any input appreciated

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bitwrx

Member
I have a couple of the 'second idea' things set up.
Breeding stock replacements and semen come from the same ltd co, but under different brands. I have the two brands as different Xero Contacts.
Likewise we buy straights from one arm of a big agricultural supplier, and compounds from another arm. Again, use the brand names as Contacts.
 

Dairyfarmerswife

Member
Livestock Farmer
Location
Shropshire
how to people enter livestock purchases on xero

as a bulk purchase

or by the cattle ear tag no ?

zm
We don't buy much stock but for sales I enter the eartag. I find it a handy way of double checking passports etc as I go along and for barrens I put the reason - fertility/feet/udder etc and the grade from the abbatoir. It's handy when you have to do the health plan to know the reasons they were culled. I also think having the tag numbers at a glance should be easier for purchasers when doing movements.
 

bitwrx

Member
VAT return done today, and one year completed on Xero. Been a bit of a learning curve, but it's been worth it.

Just wondering what I should do at year-end, if anything?

How do people do opening and closing balances for things like straw and er... oh yeh, pigs! I have some current asset accounts for various stock classes. Presumably I just balance a transaction on 30 Sep (year end) with the owners' equity account? Or is there more to it than that?
 

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