Tut, kindly explain how to handle this transaction in Manager.
Vendor A provides canteen services for a company
Vendor A invoices weekly based on the tickets used. A ticket cost NGN400 each
a. The company normally subsides the meal ticket for staff
b. The company prints meal tickets in booklets
c. A booklet contains 20 to 22 pieces of meal tickets each, depending on the number of working days in a month.
d. The subsidy Company pays for staff ticket is dependent on staff level
e. The company pay lesser money per ticket for Senior Staff than for Junior staff
Staff pays in two ways:
a. By direct deduction through payroll (for staff that bought a booklet of meal ticket)
b. By paying cash over the counter for a ticket at the point they want to eat at the Canteen.
Please see the example below:
A. Vendor A invoices the company for 400 tickets total NGN160,000 for a week.
But total bills at the end of the month is 1350 tickets totaling NGN540,000.
B. Company pays Vendor A the sum of NGN160,000.
C. The sum of NGN70,000 was deducted at sources from payroll at the end of the month.
D. The sum of NGN25,000 was the total cash sold over the counter and paid into the Bank.
Note that the Company pays the Vendor promptly each time it presents its weekly invoice.
Not all staff exhaust their booklet at end of each month.
Please how will Manager account for this treatment in terms Dr & Cr:
Deduction at source from staff payroll
Cash sold from tickets over the counter
Meal Expense account (Profit / Loss)
I am sorry, @cmnak, but I do not have time to design your accounting workflow. Your questions are not really about how to use the Manager application, but how to accommodate your individual practices. I would need to set up an entire test company, with suppliers, employees, bank accounts, and so forth and enter model transactions to explore the situation. I suggest consulting with a local accountant.
@cmnak what you require is quite basic accounting and doesn’t require any complicated modelling.
Assuming that the maximin meal ticket price is 400 and that the staff contributions are a reimbursement towards that cost, e.g. junior staff may pay 100 leaving a subsidy of 300.
Therefore your transactions in Manager would be:
For the Vendor A, their Invoice for 160,000 would be taken up as a Purchase Invoice:
Dr - Meals Expense account (P/L)
Cr - Accounts Payable > Vendor A
To pay Vendor A 160,000 you would create a New Payment:
Cr - Bank
Dr - Accounts Payable > Vendor A
For the employees direct deductions this would be part of the payroll transaction:
Dr - Wages & Salaries (P/L)
Cr - Meals Expense account (P/L)
Cr - Employee Clearing (BS)
If you are using the Manager Payslips tab then you would normally create a Payslip Deduction Item. However, here there is a problem as Manager only allows payroll deduction items to be posted to a BS account and not a P&L account so the workaround here is to create a Payslip Earnings Item but use negative figures.
For the employee cash payments, this will depend upon your internal processes but if we assume that they are banked daily then you would create a New Receipt:
Dr - Bank
Cr - Meals Expense account (P/L)
The above is your basic transaction structure, but is adapted to your actual processes.