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VT Transaction+

Navigation: Basics

Quick start

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The following instructions explain how to set up and use VT Transaction+. If you have already carried out a step, or it is not relevant to you, you can skip to the next step.

Install the software

Enter your license key

Create a data file for your business

Set the financial year

Decide how you will account for income and expenditure

Set up accounts, including customers and suppliers:

Customer and supplier accounts

Other accounts

Enter transactions:

Transaction entry methods

Opening balances

Bank, cash, and credit card transactions

Customer transactions

Supplier transactions

Non-routine transactions

Reconcile bank accounts

Issue statements to customers

Track amounts owed by customers and owed to suppliers

Submit a VAT return

Run reports

Year-end procedures

Other common topics

Install the software

Click on the relevant link below to download the installation file for the package you have subscribed to:

VT Transaction+ only

VT Final Accounts and VT Transaction+

When you click on the download button, a pop-up for the installation file appears in the corner of your screen; click on it (or you may need to select Run or Open depending on your web browser). If you do not see the pop-up, go to the Downloads folder on your PC and click on the file from there.

If you encounter any issue when installing see Installation.

Enter your license key

1.Start the software by clicking on the VT Transaction+ shortcut on your desktop:

VT icon

2.In the VT Transaction+ menu, select Help > Register Software and enter your customer number and license key - these will have been sent to you by email from info@vtsoftware.co.uk. For more details, see Enter your license key.

If you are on the free trial, you do not need to enter a license key until the trial period has ended.

Create a data file for your business

You must create a data file for each business you maintain accounts for. This file is saved to your PC and VT Software has no access to it. All data entered for a particular business is saved to this file, so it is necessary to make regular backup copies of the file(s) - see Backing up data files. You should avoid creating different versions of a file for the same business, other than backup copies.

1.Select File > New Company:

new company

(To open a file that you have already created, select File > Open Company, or Display > Recently opened files.)

2.In the New Company/Business dialog:

a)Enter the name of the business.

b)Tick the VAT registered box if the business is registered for VAT (Do not tick VAT cash accounting, unless the business uses HMRC's VAT cash accounting scheme).

c)Select the appropriate chart of accounts template for the business: Company, Partnership, Self employment and so on. If you want to create your own chart of accounts template, select File > Templates > New, then choose an existing template from which to base your new template on. You can then modify the accounts in the new template as you wish.

New company dialog

d)Click on OK to save the file to your PC. The default location suggested to save the file to is the Documents folder, but you can choose a different folder.

Set the financial year

1.Click on the caption at the bottom of the screen that says [year not set].

application_status2

2.Enter the dates of your financial period.

Decide how you will account for income and expenditure

Income and expenditure are normally accounted for under the accruals basis of accounting (i.e. recording income when earned and expenditure when incurred). However the cash basis of accounting (i.e. recording income and expenditure when payment is made) can be used by unincorporated businesses, if they wish.

VT Transaction+ is designed for accruals basis accounting, however cash basis accounting can be used by making sure that income and expenditure are recorded when payment is received or made. This can be achieved by not using the customers and suppliers ledgers, but instead using only the REC (bank/cash receipt) and PAY (bank/cash payment) or P+R transactions to record income and expenditure.

If the business is a limited company you must use the accruals basis of accounting.

If the business is an unincorporated business you can use the cash basis or the accruals basis. If you use the accruals basis, you must notify HMRC of this by ticking the relevant box when you complete your self-assessment tax return.

For further details, see Cash basis and accruals basis.

Set up accounts, including customers and suppliers

Customer and supplier accounts

The need to set up customer and supplier accounts depends on how you account for sales and purchases - see Customer and supplier transactions for more information.

To set up customers and suppliers:

1.Click on the CU and SU buttons respectively on the main toolbar:

Customer button   supplier button

2.Select Set up a new account and enter the name of the account. For further details see Creating customers and suppliers.

toolbar2

The main toolbar in VT Transaction+

Other accounts

The default chart of accounts should be adequate for most transactions.

If you need to set up new accounts:

1.Click on the A button on the main toolbar:

Account buttond

2.Click on the ledger in which you want the account to be, and select Set up a new account.

To modify an existing account:

1.Click on the A button on the main toolbar:

Account buttond

2.Select the account.

3.Select Change the name or other details of this account.

For further details see Accounts and ledgers.

Enter transactions

When you enter transactions for a particular business, they are saved to the data file for that business when you click on the Save button in the transaction entry screen.

Transaction entry methods

Transactions can be entered by clicking on the relevant transaction button on the main toolbar (P+R*, PAY, CHQ, REC, TRF, SIN, SCR, SIN, SCR, PIN, PCR, CTX, JRN, RJN). For further details see Transaction entry methods.

toolbar2

The main toolbar in VT Transaction+

If you want to add departments or categories to transactions, these can be set up by selecting Set Up > Currencies, departments and lists > Departments (or Lists to create your own category). For further details see Departmental costing.

Transactions can also imported in bulk by clicking on the Universal Input Sheet button:

UIS_button

For further details see Importing.

*The P+R transaction type allows you to enter several payment and receipt transactions in one batch.

Opening balances

If you have not been using VT Transaction+ since your business started, you will have some opening account balances to enter; see Opening balances.

Bank, cash, and credit card transactions

Bank or cash transactions can be entered by clicking on the PAY (payment out), CHQ (cheque payment), REC (payment received) and TRF (transfer between bank accounts) buttons on the main toolbar.

toolbar2

You can also enter bank or cash transactions in a single batch by using the P+R button - for further details see The Payments And Receipts entry method.

Alternatively, you can import bank transactions from a bank statement file by clicking on the Universal Input Sheet button:

UIS_button

For further details see Importing from a bank statement.

Credit card transactions can be entered in the same way as bank transactions; see Credit card transactions.

Customer transactions

Cash sales:

If you make sales to customers who pay you at the point of sale (for example, shop sales), the customers ledger is not normally used. These are known as cash sales (although the term cash is slightly misleading as the sales do not have to be in cash). Instead, one transaction can be entered that accounts for both the income and the payment received. For example:

The accounting double-entry for payment received (REC) for a cash sale of £120.00:

Ledger

Account

Debit

Credit

Bank

Current account

120.00


Income

Sales


100.00

Creditors

VAT - Output


20.00

Credit sales:

The customers ledger is normally used if you make invoiced sales to customers who pay you later. These are known as credit sales. This requires two separate transactions: the sales invoice (SIN/SIN) to record the income, and a receipt (REC) to record the payment received from the customer. For example:

The accounting double-entry for a sales invoice (SIN/SIN) of £100.00 + VAT (£120.00 inc VAT):

Ledger

Account

Debit

Credit

Customers

Customer A

120.00


Income

Sales


100.00

Creditors

VAT - Output


20.00

The accounting double-entry for the payment received (REC) from the customer for the above invoice of £120.00:

Ledger

Account

Debit

Credit

Bank

Current account

120.00


Customers

Customer A


120.00

Enter customer transactions:

Generate a sales invoice

1.Click on the SIN button on the main toolbar:

SIN button

2.Complete the required fields.

For further details see Raising a sales invoice.

A sales credit note is generated in the same way, by selecting the SCR button.

Enter a sales invoice (generated in another program)

1.Click on the SIN button on the main toolbar:

SIN entry button

2.Complete the required fields.

A sales credit note is entered in the same way, by selecting the SCR button.

Enter a payment received from a customer

Method 1:

1.Enter an REC transaction as part of your bank transactions as described in Bank, cash, and credit card transactions.

2.Manually match off the REC against the sales invoice(s) (SIN/SIN) as follows:

a)Click on the CU button on the main toolbar:

Customer button

b)Select Open Entries then click on the REC and associated SIN/SIN transactions so that they are highlighted in blue.

c)The contra button then appears:

contra

Click on this to match off the transactions.

Note: If the transactions do not net to zero, the following button appears instead:

mutuallyassociate

which allows you to partially match off the selected transactions, should you want to.

Method 2:

Enter an REC directly against the SIN/SIN(s) as follows:

1.Click on the CU button on the main toolbar:

Customer button

2.In the Open Entries tab, click on the SIN/SIN transaction(s) so that it is highlighted in blue.

3.Click on the special REC button that then appears directly above (not the one on the main toolbar):

specialrec

The special REC button

This creates an REC entry automatically matched off against the selected SIN/SIN(s).

For further details, see Customer and supplier payments.

Supplier transactions

Supplier transactions follow the same principles as customer transactions, but applied to purchases and suppliers.

Enter supplier transactions:

Enter a purchase invoice

1.Click on the PIN button on the main toolbar:

PIN button

2.A purchase credit note is entered in the same way, by selecting the PCR button.

Enter a payment to a supplier

Method 1:

1.Enter a PAY transaction as part of your bank transactions as described in Bank, cash, and credit card transactions.

2.Manually allocate the PAY to the purchase invoice(s) (PIN) as follows:

a)Click on the SU button on the main toolbar:

supplier button

b)Select Open Entries then click on the PAY and associated PIN transactions so that they are highlighted in blue.

c)The contra button then appears:

contra

Click on this to match off the transactions.

Note: If the transactions do not net to zero, the following button appears instead:

mutuallyassociate

which allows you to partially match off the selected transactions, should you want to.

For further details - see Customer and supplier payments.

Method 2:

Enter a PAY directly against the PIN(s) as follows:

1.Click on the SU button on the main toolbar:

supplier button

2.In the Open Entries tab, click on the PIN transaction(s) so that it is highlighted in blue

3.Click on the special PAY button that appears directly above (not the one on the main toolbar):

specialpay

The special PAY button

This creates a PAY transaction that is automatically matched off against the selected PIN(s).

For further details see Customer and supplier payments.

Non-routine transactions

Non-routine transactions are normally entered by journal entry (JRN). If you require the journal to automatically reverse in the next period (which is commonly done for accruals and prepayments), use the RJN (reversing journal entry) transaction:

Examples of non-routine transactions are:

Wages and salaries journals

Fixed assets depreciation

Accruals and prepayments

Writing off bad debts

Corporation tax

Dividends paid

Reconcile bank accounts

To perform a bank reconciliation, click on the R button on the main toolbar:

Reconcile_button

For further details see Bank reconciliation.

Issue statements to customers

1.Click on the CU button on the main toolbar:

Customer button

2.Select the customer.

3.Click on Statement.

For further details see Customer statements.

Track amounts owed by customers and owed to suppliers

If you use the customers and suppliers ledgers, you can see who owes you and to whom you money, using the Age Analysis reports. Select Display > Age Analysis > Customers/Suppliers.

Submit a VAT return

To set up MTD (Making Tax Digital) for VAT, see Setting up MTD: businesses (or Setting up MTD: agents if you are an agent submitting VAT returns through an agent services account).

To generate a VAT return, click on the VAT button on the main toolbar:

VAT button

and select New VAT return - for further details see Submitting a VAT return to HMRC.

To submit a VAT return, click on the VAT button on the main toolbar

VAT button

and select Submit VAT return to HMRC - for further details see Submitting a VAT return to HMRC.

Run reports

To generate reports such as profit and loss, balance sheet, trial balance and transaction reports, select them from the Display menu - a list of reports is given in the Report windows topic.

To copy and paste any report to a spreadsheet, run the report then click on the Copy button:

Copy

then in your spreadsheet, right-click and select Paste.

To export a report to VT's spreadsheet program, VT Report, select Edit > Export to VT Report.

To find specific data in a report, select Edit > Find. This opens the report in VT Report, where you can enter the data that you want to find in the Find what: field.

Year-end procedures

The change the financial year to the next year, click on the financial year caption at the bottom of the screen and select Next:

year-end

This automatically transfers the balances in P&L (for example, income, cost of sales, expenses) accounts to the accumulated profit and loss account (called 'Profit and Loss account' in VT Transaction+) in the capital and reserves section of the balance sheet at the year-end date. This is done through an automatic transaction called a Year-End Transfer (YET). For further information, see Year-end procedures.

Other common topics

Bookkeeping basics

Moving VT Transaction+ to another PC

Using VT Transaction+ on multiple PCs

Access a VT Transaction+ file on different PCs using a cloud storage service

Emailing a data file

Multi-currency quick start

Deduction of fees from sales

Recurring transactions

Correcting mistakes

Domestic reverse charge VAT for construction services

Sales of goods abroad

Sales of services abroad

Purchase of goods from abroad

Purchases of services from abroad

Correcting mistakes on VAT returns

Flat rate scheme

Archiving old transactions