You need to capture all the supplier invoices you have received for purchases on credit from, your creditors (suppliers).

- If you have purchased trading stock items, you need to enter your credit purchases of trading stock (supplier credit notes) in the Input→Documents→Purchases menu option. By creating a Purchase document, TurboCASH will automatically write up your Purchase Journal for you.

This journal is used to record your credit purchases for the day. You would record the supplier invoice number, date of the supplier invoice, details, the creditor (from whom you have purchased), Input VAT/GST/Sales Tax (if you are registered for VAT/GST/Sales Tax) and the amount - including or excluding VAT/GST/Sales Tax, if you are registered for VAT/GST/Sales Tax and VAT/GST/Sales Tax is applicable to a transaction.

To Enter Purchase Returns Transactions:

1. Click on the Batch Entry icon, or click on the Input→Batch Entry menu option.
   - Keyboard Access: Press the F2 key on your keyboard. Alternatively, press the Alt+I+B keys on your keyboard.
   The Batch Type Selection screen will be displayed.
2. Select the Purchase Returns Journal (or Purchase Journal).
3. Click on the Open button. The Batch Entry Transaction screen for the Purchase Returns Journal (or Purchase Journal) is displayed:
   
   - If no contra account is displayed on the Batch Type Selection screen, you need to set up the options for the batch. If you have not yet set the Purchase Returns Journal (or the Purchase Journal) batch for supplier credit notes, or if your requirements should change, click on the F10: Setup icon, or press the F10 key on your keyboard.
   - Note that for Supplier Credit Notes, the Amount Entry field should be set to debit.
   
   - If you have a few supplier credit notes, you may enter a negative (minus sign), followed by the amount in the credit column. These amounts will be transferred to the debit column.
   
   - If you have many supplier credit notes to capture, you need to set the amount entry to debit in the setup options for the purchase journal, before entering supplier credit notes in the Purchase Journal. Alternatively, you may enter the supplier credit notes in the Purchase Returns Journal.
4. Enter the following supplier credit note in the Purchase Returns Journal (or Purchase Journal):
   
   Enter and / or select the following:
   • Reference number - Enter the purchase or other applicable number you allocate to the supplier credit note.
   • Date - Enter or select the date of the transaction (i.e. date of supplier credit note).
   • Description - Enter a brief description for the transaction.
   • Account - Select the Creditor Account.
   • Contra Account - Select the account to be credited with the credit purchase returns (expense or asset).
   • Tax Account - Select the applicable Input Tax Account for the expense or purchase.
     - This is only applicable if Input VAT/GST/Sales Tax is allowed on a transaction, and if you are registered as a VAT/GST/Sales Tax Vendor. If no VAT/GST/Sales Tax is applicable to the transaction, select the No Tax code.
     
     - You may also select to hide the Tax column, and lookup facility in the Setup Options for the Purchase Returns Journal (or Purchase Journal), if no VAT/GST/Sales Tax is applicable to all transactions in this batch; or if you are not registered as a VAT/GST/Sales Tax Vendor.
     
     
   • Amount - Enter the amount of the transaction (Inclusive or Exclusive of VAT/GST/Sales Tax) in the Credit amount column.
5. AAfter entering the supplier credit notes in the Purchase Returns Journal (or Purchase Journal), the transactions will be displayed as follows:
   
   
6. Click on the F5: Balance icon, or press the F5 key on your keyboard, to balance the batch. The balancing transactions are displayed as follows:
   
   
7. TurboCASH will generate balancing entries to the similar selected purchase contra accounts, and the Input VAT/GST/Sales Tax account.
   - If the Consolidate Balancing option is selected in the Setup Options for this batch, the description for the balancing entries or transactions, will be displayed as “BALANCING ENTRY Purchases Jnl”.
   
   - It is a good idea to over type this description, as it is not very meaningful to an outside auditor or accountant. If you over type these, it will definitely make it easier to trace and reconcile transactions.
   
   
   • Over type the description with “Supplier Credit Notes March 2007” in the description column.
   • Over type the VAT/GST/Sales Tax description with “Supplier Credit Notes March 2007” in the description column.
   • Do not over type the eight asterisks in the reference column, as this indicates that these are contra transactions.
8. Click on the F9: Process icon, or press the F9 key on your keyboard, to change the alias (batch name).
   - This will help you if you wish to identify a specific batch to generate a batch type report, or if you wish to export posted batches to a file.
   
   
9. Click on the F8: List icon, or press the F8 key on your keyboard, to list the batch.
   - It is a good idea to list the batch, and check the entries on the batch thoroughly. If there are any errors, you may edit the batch, before posting the batch.
   
   
10. Click on the F6: Post icon, or press the F6 key on your keyboard, to post (update) the batch to the ledger.

After posting the transactions, the T-Account View of the transactions should reflect as follows:

1. Creditor’s Ledger:
   
   The full amount, including Input VAT/GST/Sales Tax, is debited to each individual Creditor’s Account in the Creditor’s Ledger.
   The total amount of the individual Creditor Accounts is also updated in the Creditor’s Control Account in the General Ledger.
2. General Ledger:
   
   
   The total amount, excluding Input VAT/GST/Sales Tax, is credited to the Purchase Account (i.e. Furniture and Fittings @ Cost).
   The total amount of the Input VAT/GST/Sales Tax is credited to the Input VAT (GST/Sales Tax) Account or Tax Code.

- Debits - Creditor’s Ledger = Credits - Purchase Account (i.e. Furniture and Fittings @ Cost) + Input VAT (GST/Sales Tax) Accounts

- If the Consolidate Balancing option was not selected, when the options for this batch was set, the individual supplier invoices would have been listed or posted to the Purchase Account (i.e. Furniture and Fittings @ Cost) and Input VAT (GST/Sales Tax) account.

- It is not necessary to post (update) the transactions at the end of each day. You may add and / or post the transactions on a daily, or weekly basis, or at the end of a month. When you have entered a few transactions, you may close or exit the batch. The data will not be lost.

- Before you wish to post the batch, please ensure that you have checked the transactions, changed the alias, and printed a list of the entries in the batch.