This article answers some of the most frequently asked questions (FAQ) related to expenses and targets Payhawk Accountants.
Can I account for retention payments in Payhawk (for example, Construction Industry Scheme deductions)?
Yes, you can account for retention payments in Payhawk by using a negative line item to represent the withheld amount.
Here's how to structure the expense:
Line Item 1 - Enter the full net amount of the invoice with the appropriate VAT rate code applied.
Line Item 2 - Add a negative line item representing the retention deduction (for example, 11%). Assign this line item no VAT code or a 0% VAT rate.
VAT Amount - The system will calculate the VAT based on Line Item 1 only, ensuring the tax is correctly applied to the gross amount before retention.
Why can't I return an approved expense for editing?
Once an expense has been reviewed and processed by a Payhawk Administrator, it becomes locked and cannot be edited by regular users. Any changes, such as adding an invoice, must be performed by a Payhawk Administrator, Payhawk Accountant, or a custom role that has the relevant permissions.
Can I manage invoices from a previous accounting period in Payhawk?
Yes. If your previous accounting period is still open - for example, you started using Payhawk in January but your December period remains open - you can manage invoices from the previous accounting period in Payhawk by adjusting the document date.
The document date reflects the date on the invoice itself, not the date it was uploaded or created in Payhawk. When you upload an invoice, Payhawk's OCR reads the true document date from the document. You can backdate the document date to match the invoice's original date, ensuring it posts to the correct period in your accounting system.
The Service period field in Payhawk typically defaults to match the document date. In integrations like Xero, which don't have a separate Posting date field, the service period can override the document date if needed.