I do accounts for a club in my work place. The club organises multiple recreational activities yearly for staff, example, a Run (like a half marathon). The club accepts cash for those recreational activities and spend them to purchase goods needed for that same activity.
Recently, i made a purchase for some goods and was invoiced $10000 by the supplier. When the goods arrived, i was asked to pay (to the courier service provider, $100 as courier fee) and this will be ‘off set’ from the total invoice of $10000. So i now, only need to pay $9900 directly to the supplier.
How can i allocate all these transactions in Manager?
I initially wanted to create a ‘debit note’ of $100 against that invoice, but not sure which ‘account’ or ‘subaccount’ to allocate this. any idea?
I have initially created a subaccount, named 'recreational income (under income subaccount) - to allocate monies collected for all recreational activites and another 'recreational expenses (under espenses subaccount - to allocate all monies spent for recreational activities
Who does the club receive money from and does the club receive income from these activities or is the money collected (held in trust) on behalf of the event and fully spent on that event ?
Process the supplier invoice (10,000) as normal, but this is paid with two Spend Money transaction, the first is for 100 and the second for 9,900. Nothing else is required.
This really depends if the events is a club income activity or monies held in trust for the events.
Eg: Money collected on behalf a charity and spent on equipment for that charity would be monies held on trust.
The club receives money from members (just as any membership fees) as well as receiving income from our activities. all income will be fully spent for the event.
I thought of this too. however, strictly speaking, 2 payments are made for 2 different parties, that is, 100 to the freight provider and 9900 to supplier. therefore if I were to ‘spend money’ and enter 9900, there will always be an extra ‘100’ unpaid.
create a Dummy Bank Account or Reconciliation Account (Bank) this account should always be zero
Debit 100 Reconciliation Account Credit 100 Bank (actual)
Debit 10000 Purchases Credit 10000 Creditors
Debit 100 Creditors Credit 100 Reconciliation Bank
Debit 9900 Creditors Credit 9900 Bank (actual)
Reconciliation Account, Creditors should be zero
Purchases increase 10000
Bank decrease 10000
This is not an issue, the payments relate to the payment of the Invoice not a particular party.
Frequently, third parties may receive or make payments as part of a transaction.
Please don’t confuse the topic, which has nothing to do with multiple currencies. Further, your statement is no justification for dummy bank accounts or other false entries.
@pauldoc, @Brucanna is steering you down the correct path. As much as I regret discouraging participation in the forum, @jeffang is straying from the subject and giving incorrect information.
Going back into the subject. I decided to asked the supplier to give me a ‘debit note’ of 100. this way, i won’t have ‘unpaid’ amount in the invoice supplier issued. however, i notice something that in the latest update, the debit note appears a little differently. there’s no ‘item’ drop down menu as previously. refer below
The Debit Note itself creates the transaction (Debit) onto the Suppliers account, if you could select the accounts payable account where you suggest then your transaction would be putting both a Debit and Credit to the suppliers account.
The Debit Note 100 should be offsetting wherever you posted the Purchase Invoice 10,000.
The only reason the Item field should not appear is that you have neither inventory nor non-inventory items enabled. Your screen shot shows you don’t have the Inventory Items tab enabled. And I suspect you haven’t defined any non-inventory items under Settings.
And, by the way, version 17.7.4 is not the same as 17.7.40. You are already 36 versions ahead of @Brucanna. That’s how fast the program changes.
[quote=“Tut, post:17, topic:10867”]
The only reason the Item field should not appear is that you have neither inventory nor non-inventory items enabled. Your screen shot shows you don’t have the Inventory Items tab enabled. And I suspect you haven’t defined any non-inventory items under Settings.
[/quote] Thanks @Tut !. you’re right. i didnt enable the inventory items. as the club is an non-profit society, we don’t sell things, hence the ‘disablement’ of the “inventory items” tab.
