▶ How do I enter expenses paid to the Clerk to show the VAT supplier on Form 126?

How do I enter expenses paid to the Clerk to show the VAT supplier on Form 126?

It's common for a Clerk or RFO (Responsible Financial Officer) to incur minor expenses or make purchases that will be reimbursed, often on a monthly basis for multiple transactions.

On Scribe, you can record these as a single payment transaction and add multiple rows if the reimbursement relates to more than one code or VAT rate.

If the expenses included items with VAT charged, you can reclaim the VAT using Form 126. However, you might encounter an issue where the Form 126 report displays the Clerk/RFO as the supplier (since they are the one being reimbursed), not the actual VAT-registered supplier.

You have two ways to handle this:

Enter transactions using the actual supplier

Instead of recording the total expenses paid to the Clerk, enter each transaction using the actual VAT-registered supplier. This method ensures that when you run the VAT Form 126 report, the entries that incurred VAT will display against the original supplier, along with their VAT number (if you've entered it).

When you input these transactions, consider adding a reference like "Clerk expenses" to the Cheque no. or Invoice/Order no. field in the transaction. This helps distinguish this transaction when you're reconciling it with the bank statement.

Amend the Form 126 report

You can choose to enter the expenses with the Clerk/RFO as the supplier. When you run the VAT Form 126 report, the transactions with VAT will be associated with the Clerk/RFO, since they are listed as the supplier.

To fix this, you can export the report to Excel or Word and then manually change the relevant transactions to the actual supplier, along with their VAT number.

By using either of these methods, you can accurately report and reclaim VAT for expenses incurred by the Clerk/RFO.