Hello there. I have tried changing the name of Accounts Payable in the chart of accounts and also adding some new accounts under Liabilities. I allocated items from several purchase invoices to the newly created account under Liabilities but then decided to keep things simple and go back the default where all the items from purchase invoices are recorded in Accounts Payable (until they are paid in full by creating a payment for it). So I’ve deleted all the new accounts I have created manually under Liabilities and I’ve also deleted the new name I gave to Accounts Payable. So now in my Summery it looks like before. And yet when I try to allocate all the items in my purchase invoices back to Accounts Payable, the said account does not appear in the drop down menu (should be under Liabilities, but isn’t). If I don’t allocate the items to anything, it state “suspense” which I know is an automatic “account” where incorrect or not allocated invoices are stored. Yet under Summary the sum of some of the invoices appears under Accounts Payable even though when editing them, under Account it states “Suspense”. Also one of the invoice is allocated both in Suspense and Accounts Payable (guess it is because it was created AFTER I’ve tampered with the Liabilities accounts in the chart of accounts ). How can I go back to allocating all new purchase invoices to Accounts Payable? Thank you.
Post some screen images of your Summary page and Chart of Accounts
You also need to show a representative supplier entry screen. You may have complicated things there, too.
Also, what edition (desktop, server, or cloud) and version?
I speculate this has something to do with Supplier setup.
1st, in “Chart of Accounts,” make sure that your payable account is a configured as a “control account.”
2nd, in “Suppliers,” edit one supplier and make sure that at least one supplier is assigned under your new control account for payables.
3rd, backup your db and batch update your “Suppliers” so that they all are assigned to the control account.
Finally, edit all previous transaction, reenter supplier and update them.
See if that helps.
Thank you everyone for trying to help. I am on the desktop version (18.12.22) on iOS.
Here are some screenshots.
The payable account is configured as a “countrol account”
I edit a supplier but that didn’t seem to do the trick also you can see that under supplier the unpaid invoices are showing in the respective field of Accounts Payable.
I’m not sure how to assign suppliers to the control account.
I tried to edit some of the previous transactions and reenter the supplier but that didn’t do nothing.
Everything there looks completely normal
When you create a purchase invoice it is automatically posted to Accounts Payable. The account list you show on the line item is to select the expense accounts where the purchase will be posted not the supplier account. That is done when you select the supplier
By the way, you are hundreds, if not thousands, of versions behind. You need to upgrade your software or else a lot of the explanations in the guides and forum will make no sense
Make sure you download the latest version from the official website www.manager.io
Thank you for pointing that out. I have downloaded the newest version and am using it now. However I am still confused why are the new purchase invoices being recorded in Accounts Payable as well as in the Suspense account. The few invoices I have created before the mess I did are only recorded under Accounts Payable not under Suspense account even though I have not selected any “expense account”. You see, following that logic if I don’t select any expense account for any of the invoices created they should all be posted in Accounts payable (which is true) but also in Suspense account (which is not true, because only the ones that I create now are posted there). See the amount should be the same for AP as well as SA (because I didn’t select any expense account).
you answered the question yourselves with the below statement.
“The few invoices I have created before the mess I did are only recorded under Accounts Payable not under Suspense account even though I have not selected any “expense account”.”
by the way are you certain those invoices are not in Suspense account? i believe not because the negative value in Suspense raises the suspicion.
you should not be following this logic simply because it is not correct practice.
it will not be the same because like i said above, the Suspense account has a negative value which means there are a number of transaction crediting and debiting the account. you need to click on the blue figure next to it to get a list of the transactions and correct them. if possible post a screenshot of the same.
@Alexandra_Varsova, it is difficult to tell exactly what is happening with your accounting records, because you have updated your software by several hundred versions since taking some of your screen shots, and you have stated that you have taken several actions that are not clearly described. So, the following comments and observations are given in order to help you sort the problem (if there is one) out by yourself. If they are not adequate, start over with new screen shots and exact descriptions of what you think is wrong.
Accounts payable is not available as an account selection for a simple reason. When you select a supplier, you are telling the program to apply the credit side of the transaction to Accounts payable and the supplier’s subaccount. This is automatic. The account you are selecting tells the program where to post the corresponding debit side of the transaction. Usually, that will be an expense account, because you are purchasing something. This is what @Joe91 told you in post #6. The major exception would be when you purchase inventory, when the debit will post to the asset account, Inventory on hand.
Transactions can be in Suspense for more than one reason. In the situation you describe, the credit is known, so the transaction appears in Accounts payable for the supplier. But the debit is unknown, so it appears under Suspense. If you drill down on both, you should see the amount is in the credit column for Accounts payable and debit column for Suspense.
As stated above, this is automatic for the credit side of the transaction. The only way the credit will be posted elsewhere is if you define a custom control account and assign the supplier to it. And you said you undid all of that.
Ignore @Ealfardan’s comment. This would only be true if you were using custom control accounts in place of Accounts payable. Since you have reverted to using the built-in Accounts payable account, you cannot choose whether or not it is a control account. It is, by default.
Also ignore this, for the same reason.
Likewise, ignore this for the same reason. (All of @Ealfardan’s comments would have been valid if you were using custom control accounts to record payables for your suppliers.)
You cannot, because you no longer have a custom control account. If you did, you would click Edit for a supplier in the Suppliers tab. A control account field would be visible. Since you don’t have a custom control account, the field does not appear.
You should not expect it to. You just re-entered the same information.
On a different topic, you have a balance in Starting balance equity. There should never be anything in this automatic account. Manager places artificial entries in this account when your initial setup is wrong in order to balance your books (Assets = Liabilities + Equity). Usually, the problem occurs when users enter a starting balance in a bank or cash account without a corresponding balance in an equity account. Note that starting balances should only be used when you are migrating to Manager from a previous accounting system.
Thank you for the detailed explanation. I understand the whole system better now
Yes, I do have a starting balance equity because my business has been running for a few months now and I am migrating from another accounting software. I have sorted out the problem of the AP and Suspense account by creating a custom account for goods purchases where I am now allocating items from the purchase invoices - therefore they are no longer hanging in the Suspense account. Obviously purchase invoices that were made BEFORE the date of starting balance were not recorded in the suspense account (now goods accounts). Thanks again for all the help everyone.
Can you explain this further? It sounds like you may not be doing things correctly. Inventory items, when purchased, are automatically posted to the Inventory on hand asset account unless you have created a custom control account made up of inventory items and assigned inventory items to that account. You have not described doing that, and have mentioned no circumstances where such steps would be needed.
Inventory value remains in Inventory on hand until an item is sold, when it is automatically transferred to the default Inventory - cost account as an expense (the cost of goods sold). The only way this does not happen is if you designate a custom expense account for the item, in which case the cost is transferred to that account. You also did not mention doing this.
So what exactly do you mean by “a custom account for goods purchases where I am now allocating items from the purchase invoices?”