I had hit by the wall. When I’m doing one of my client’s company account. It is related to limitation of not allowing sales invoice/purchase invoice to use Bank Account/Cash Account in line items.
By far the company has established more than 13 years, no issue with auditors. Just recently they switch the accountant to me. So this is my first time with the said client.
What interesting and frustrating is. The company purchase invoice include line item of loan cash from his/her vendor. Where Manager Does not allow it. For Repayment there is no interest only principal, even there is. it can be split at payment form in manager.
So as you assume the purchase invoice some items double as loan from its vendor.
Can the limitation lift from manager? or is there another way to do it?
Even the journal Entry does not allow it.
This limitation also affects me when doing bank reconciliation. The bank statement has the record but the manager can’t reflect.
if I record as receipt where by
debit bank credit revenue or expense will misrepresenting the nature of transaction / if I entered of liability account of the name of the vendor (loan financier) in payment voucher they prepare will conflict the transaction recorded in manager. If choose liability account it will left the liability account loan financier account it will balloon as the payment will be made at account payable instead liability account loan financier account. and only the account payable will be overpaid when payment is made.