I have an issue with accounting entry. How to pass entry for :
A customer maintains deposit with a local shopkeeper. He deposits some amount regularly with them (payment mode can be cash or electronic medium). After some period (6,10, 12… any months) he buys something from them for which he pays excess differential amount.
As the product is an asset, so opened deposit account under Asset (BS). But now no option to pay by cash in journal entry so bit confused how to accommodate purchase transaction at single go.
Thanks but this isnt what am looking for… I have recorded initial payments already. It is about final purchase and payment comprising of initial (monthly) payments and additional amount paid by cash and through bank. All adjusted under single invoice from seller.
i think you are trying to make cash payments through journal entry which is not the method to follow in Manager. it should be recorded in the Receipts & Payments tab. read the guide Record a payment | Manager
Thanks Abeiku, sharpdrivetek and Davide but seems I am unable to explain in plain text… hence I will try to explain my issue with examples :
Initial Transaction :
In My Books (Manager) - Current
In My Books (Manager) - Final
Passing above entry (Final transaction) with multiple transactions (Receipt & Payment And Journal Entry) is not an issue. I am looking for, if there is any option to pass it at one go. Its not lack of accounting knowledge but attempt to understand Manager better.
Sounds like a lay-buy purchase to me. Is the customer just paying in advance prior to taking delivery.
Create an sales invoice for the customer.
The customer can make payment at whatever schedule is desired against the invoice.
When the customer has the funds to pay for the item they want want (including the payments they have already made) then they make a final payment an collect the item they have now bought.
If you don’t want an invoice at the onset, create a sales quote initially and only issue the invoice when the customer has legally commented to the specific purchase. In the interim funds received from the customer can be put in “Accounts receivable” → the customers account (without specifying an invoice). Alternatively create a zero valued sales invoice for that customer (eg set the line item quantities to zero initially), apply received funds to that invoice initially (which Manager will flag as over payment), and update the quantities when the customer is legally committed to the purchase and your business wants to recognize the sale.
You don’t have to this as a separate Journal, you could simply add an extra two lines within either b) or c) to represent that journal entry.
Whilst I understand that it personal accounting, but it appears that you are just having a money merry-go-round as nothing is actually being bought. Let me explain it this way:
You take 2,500 from the bank via Dr Card and combine this with 3,500 taken from your front left pocket (called Cash) and combined them together to be 6,000 and have put all that in your right front pocket (called XYZ Subs). In the final transaction you are taking another 3,000 from the bank via Dr Card, plus 650 from the front left pocket (Cash) and combining that with the 6,000 in the right front pocket (XYZ Sub) and have transferred all this, 9,650 to your rear hip pocket (called Prod 1). This 9,650 is being added to the existing 10,000 so the rear hip pocket (Prod 1) now contains 19,650. By having (b/f) in the description informs me that nothing is being actually purchased but something is being actually accumulated, the ever increasing fat wallet in the rear hip pocket.
I was looking for something like this but this isn’t possible in manager i guess. Here bank, cash and other modes are not inter adjustable. I am used to use accounting packages which allow this so wanted to know if am missing on anything here. But now have agreed on that this isn’t possible in manager and hence will have to proceed as a, b & c.
Not sure what you wanted to say, but any fixed asset purchase would mean same. Also, I feel many people here are not aware of the fact or way of how things work for small buyers.