I’m seeking guidance on how to use the Manager for a specific situation in my company. Here’s the scenario:
My company is divided into two sectors: gutters and metalworking. The gutter sector is under my ownership, so I’m solely responsible for the profits and expenses in that sector. However, in the second sector, metalworking, it’s shared among four parties: three partners and what we call the office. The partners receive profits, but these profits are only paid when we complete a job. The office is responsible for all expenses, including employees, fixed and variable costs, and they cover these expenses with the profits they receive.
Since we recently started this partnership, I’m maintaining a general account where all values from all sectors are recorded. When necessary, the main cash account covers the expenses and later charges the responsible sector. Additionally, there are times when the partners need to make weekly withdrawals, but they don’t have sufficient balances in their accounts for this. The money of the partners only enters when we complete a job, and at that moment, they reimburse the amount they withdrew in advance.
My current approach is as follows:
I create a payment (Withdrawal) from the main account to the partner’s capital account, using the subaccount “Withdrawal.” For example:
01/08 - Withdrew $100
08/08 - Withdrew $1000
The partner’s capital account has a balance of $1100, while the main account has a balance of -$1100. When I receive payment for a service on 01/09, in the amount of $500 for this partner, I issue a receipt for that amount, and the partner’s capital account has a balance of $1600. I would like a way for the balance to be $600.
My main question is how to record the withdrawals in the capital account so that they are registered as a negative balance, as if the partner were in debt. Then, when I receive payment for the service, I would like to offset part of the withdrawal they made.
I apologize for any errors in my English (English is not my native language), and for this complicated situation. However, as I’m not an accountant, I found the Manager program very useful for tracking expenses and income. I’m not interested in other features of the program, only this specific aspect of financial control. Thank you for any help or suggestions.