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Prevent auto creation of dividend voucher
The FAC system for auto-creating dividend vouchers is great, but it's causing me a few problems.
1. My accountant generates dividend vouchers, and supplies them, so the auto-created ones are not the 'right' ones for my business records.
2. My accountant recommends declaring a quarterly dividend, and then taking the actual cash over several months - FAC generates a dividend voucher per bank transaction, where I want to assign multiple transactions to the one voucher.
In both cases - the auto-created vouchers are not required or wanted - can I ask for...
An option to disable the creation of the vouchers and upload manually created ones instead.
or
Greater flexibility - specifically an option to 'declare' a dividend (and create the voucher)) and then assign bank payment transactions to it as a distinct event.
1. My accountant generates dividend vouchers, and supplies them, so the auto-created ones are not the 'right' ones for my business records.
2. My accountant recommends declaring a quarterly dividend, and then taking the actual cash over several months - FAC generates a dividend voucher per bank transaction, where I want to assign multiple transactions to the one voucher.
In both cases - the auto-created vouchers are not required or wanted - can I ask for...
An option to disable the creation of the vouchers and upload manually created ones instead.
or
Greater flexibility - specifically an option to 'declare' a dividend (and create the voucher)) and then assign bank payment transactions to it as a distinct event.
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Inappropriate?I support this idea Charles but for yet another reason. It allows accountants (if they can be bothered) to choose the best dates for paying dividends which may be needed for tax planning purposes.
I’m happy
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Inappropriate?I'd suggest you use the Directors Loan account for this purpose? - a dividend is declared but then paid straightaway into the Loan account, which is then drawn down on over several months.
It should be possible to make this match the actual dividends proposed by your accountant...
Does that sound OK, Stuart?1 Comment
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This answers the question
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Hi Ed, Lynne Martin here. Your answer here resolves my problem... could you explain how I would do this in FA please? Essentially I want to declare a dividend payment & pay it into the Directors loan account and then draw on it later. Thanks -
Inappropriate?OK - Here's the process..
First you decide the date you want he dividend (the date of the 'Meeting of the Directors').
In FAC, use the Journals option to create TWO journal items.
Code: 908 Dividend
User : You!
Date : Meeting date (as above)
Debit Value : the dividend amount
Description : 'Dividend'
and
Code: 907 Director Loan Account
User : You!
Date : Meeting date (as above)
Debit Value : the dividend amount AS A NEGATIVE
Description : 'Dividend'
That will create a Dividend Voucher on the right date, and show up on your Profit & Loss as 'Dividends Paid', and show up on your Balance Sheet as 'Directors Loan Account'
to then actually draw down that money....
Do a payment to your personal bank account in the normal way...
When the transaction appears in you bank statement, code it by creating an explanation using....
Type: Money Paid to User
Reason : Payment from Director Loan Account
Bob's your uncle!
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