Purchase Ledger

See the NOVUS Walkthrough Guide for general information about the system.

Purchase Ledger

Overview

The purchase ledger suite of programs gives NOVUS the ability to enter all purchases into the ledger, enter payments, print remittance advices, aged balances, account listings and VAT reports. It is fully integrated with the NOVUS nominal ledger and cashbook.

System settings

Several new codes in the CODES program are required to enable the purchase ledger.

Journal Types

In the CODES program, all code types tab - journal type ‘E’ must be added to the list of journal types to allow a nominal ledger account to be used for purchase ledger transactions.

VAT Codes and Rates

In the CODES program, all code types tab, VAT codes are alpha numeric and can have user defined values. However, the distinction between zero rated and exempt is important as these two categories are split in VAT reports.

Purchase Ledger Transactions

Unique IDs are added to purchase ledger transactions in sequence. The details of the sequence can be seen in the COUNTERS program. The prefix has initially been set up as ‘B’. If a different character is required it is recommended to change this before purchase invoices have been created.

Nominal Ledger Accounts

Two nominal ledger (NL) accounts must be created using the NLACC program. These are for the VAT account and the purchase/VAT creditor control account. The account codes can be chosen to suit a specific chart of accounts.

The VAT new account should be a P&L account. The purchase/VAT control account is a balance sheet account. The ‘G(+)’ and ‘G(-)’ columns only need to be completed if using the NLFINS program.

Note that NL accounts that are to be used in the purchase ledger must have journal type ‘E’ in the ‘Jnl Type’ column.

System Parameters

Once the appropriate codes have been entered, the VAT NL account and the purchase/VAT creditor control account must be entered into the SYSP program in the purchase ledger tab.

Here, the VAT registration number should also be added.

Adding Purchase Ledger Accounts

The PLACC program works in a similar way to the PARTNER program. Insurance specific fields have been removed, and the bottom right of the screen contains information specific to a purchase ledger account.

VAT Code: A list of values is available to select the appropriate code for the supplier. Rate and description are also returned to the screen. This rate will then be applied to all invoices received from the supplier unless it is overridden during purchase invoice entry.

Terms of Business: Number of days credit allowed from date of invoice. Used to calculate payable by date on invoice entry.

Default NL Acc: The default nominal ledger account to which an invoice will be posted unless overridden during the posting of the invoice nb a single purchase invoice can be split over several nl accounts.

Country code: Country code from the standard list of codes in the NOVUS codes table.

Divison List: The list of divisions to in which this account can be used. (‘*’ = All)

Stop Flag: When set to ‘Y’ prevents posting of invoices to this account.

Purchase Ledger Account Enquiry

The EPLACC program returns the details entered in the PLACC program. Double clicking on the ‘balance due to date’ field will give an explosion of the outstanding items in the currency selected.

Posting Purchase Invoices

Posting purchase ledger transactions directly to the nominal ledger (NL) are carried out using the PLPOST program.

Field name	Description
Supplier Account:	The account code for the supplier. A list of values is available for this field.
To end of period	Trial Balance up to and including this period in the accounting year.
Invoice No:	Suppliers invoice reference, free text up to 16 characters.
Type:	‘INV’oice or ‘CRE’dit note are the only two valid entries.
Inv Date:	Date on invoice (tax point).
Gross Amount:	The gross total of the invoice. The sign of this amount is validated against the type: (ie INV +ve, CRE –ve)
Currency:	The currency of the invoice, this must be a banking currency that has NOVUS ‘office’ account as set up in the BANK program.
Accs Date:	This is the earliest accounting date that can be used for nominal ledger purchases. In the screen shot above the current period is 2019 period 5 (May 2019). If the inv date is in an open period the accs date will default to the inv date entry of invoice breakdown.
Div	Select the division that this line applies to, this is validated against the list of divisions in the PLACC program.
NL ACC	The default nominal account from the suppliers PLACC program record will be displayed in this field, and its description into the reference field. Another NL account can be used if required, a list of values is available that will show all valid NL account codes (i.e. codes with journal type ‘E’).
Reference	This can be left as is, or overwritten by any text. This is saved to the ledger and will appear on reportage.
Due Date	Defaults to inv date plus the number of days terms of business in the supplier account record. This can be overwritten, so if an invoice is split over instalments the due dates can be entered as the instalment dates.
Net	This is calculated automatically based on the gross amount and the VAT rate. It can be changed if required and the VAT will be recalculated. The program will always calculate the net and VAT amounts based on the ‘outstanding’ amount, ie the difference between the gross amount and the amount already entered.
VAT Code	The VAT code/rate that applies to this line.
VAT	Automatically calculated, but can be overwritten.

Running totals of net, VAT, and gross amounts are shown at the bottom of the screen. The transaction can only be posted to the ledgers when the gross total is equal to the gross amount.

Once posted, the transaction can be seen in both the purchase ledger and the nominal ledger (using the ENLBATCH and ENLACC programs.

Purchase Ledger Payments

The PLPAY program is used for purchase ledger payments. It allows the user to select the invoices and amounts to be paid on each invoice

The bank account must be an ‘office’ account. If ‘pay all:’ is selected, all the invoices within the selected transaction/date range will be displayed marked for full payment. If not, each invoice can be fully or part paid.

The transaction and date range fields can be left blank. If they are, all outstanding transactions for the account will be brought to the screen.

Outstanding invoices are grouped by transaction/payable by date so that instalments can be settled one at a time.

Although invoices can be split by division when they are entered, it is assumed that a payment will be made from a single bank account. The payment is automatically distributed across the divisions when the payment is posted.

The 'payment details' are used in the payment record written to the purchase ledger and in the record written to the cashbook.

A simple remittance advice can be printed if required. This will be enhanced at a later date to suit requirements.

When the payment is saved NOVUS does the following;

1. Updates the outstanding amounts in the purchase ledger
2. Writes a payment record(s) to the purchase ledger (with zero outstanding)
3. Writes a record(s) to the cashbook
4. Writes to the nominal ledger bank acc and purchase/VAT control acc
5. Writes to the match_log table

As the purchase ledger is fully integrated with NOVUS the following programs can be used to view the purchase ledger payment entries:

ECASH cashbook enquiry

ENLBATCH

ENLACC nominal ledger enquiries

EMATCH matching history

The payment can be reconciled using the BANKREC program.

Version History

v4.2.0 – Updated to latest version