I meet some problem with my bank acc, when i open the expense claim or payslip will not auto link to my bank acc and deduce it…
Have check the other forum say is because is cash account problem.
So isn’t means i need to add 1 more entry in the bank acc to select speed money/transfer money?
If I not mistaken, there is no auto link to your bank account. You have to manually add the entry to the payroll and pay employee manually using your bank account. Your payroll entry will be held under “Employee Clearing Account.”
The steps are:
The reason why it’s not automatically linked to bank account is that system cannot assume every expense claim or payslip is to be paid from bank account.
Payslips can be paid from cash on hand or even from personal funds of proprietors (if business is low on cash - very common).
The same with expense claims, they are not typically paid when incurred.
This is why payslip/expense claim and the payment for payslip/expense claim are two separate transactions.
That’s why by putting option “Spend Money” in Liability accounts will enable you to choose which account to pay…Bank or Cash. If not enough fund, paid none or partial, balance as such remains as liability. Next time when you hv fund and choose “Spend Money”; it will reflect the balance amount to be paid…Exactly what you have done in Receivables and payable.
This should be applicable to all accounts under “Liability”
It will make accounting further easier
Unfortunately, what you say is not how Manager works, @Prasanna. Nor does it reflect accounting reality. Money cannot be spent from a liability account, which records how much you owe. A business’s money can only be spent from a bank or cash account, both of which are asset accounts.
Money can be spent on behalf of the company from owners’ or employees’ personal funds. The way to record such transactions is with expense claims, which create liabilities. But those liabilities can only be retired by spending money from a cash or bank account or by crediting an owner’s equity (capital) account.
So there is never a time when money would be spent from a liability account.
Hi @Tut
I agree; But then how Purchase Invoice in Liability has the option to spend money?
It does not. Spend money from a bank account and allocate the transaction to accounts payable and the appropriate invoice.