I’ve tried to work this out before and the other posts aren’t quite what I’m doing, I think.
So I receive payments into a ‘bank account’ - Accounts receivable.
Then I pay the credit card (sometimes only the basic amount, sometime more so not inline with debits on the card) and put that outgoing payment against ‘expense credit card’.
When I then allocate payments etc for the credit card, do I put those payments again ‘expense credit card’ or do I create an ‘income item’ to lodge the payments against?
Have you setup the Credit Card as a bank account ?
Its best if you do, then when you pay the credit card it would be a between the bank account and the credit card account.
For the charges on the credit card, you would use Spend Money plus the expense account.
Accounts receivable is not a bank account. It is the asset account recording what customers owe you. Transactions post to it automatically when you create sales invoices. You have not made it clear why you are involving Accounts receivable in credit card transactions at all.
The full or partial payment of a credit card statement should not be recorded against any expense account. Expense accounts came into play when you recorded the purchase transactions for things you bought with a credit card. And the proper account to post those to would depend on what you bought: Office supplies, Motor vehicle expenses, or Travel, for example, not the method of payment.
Many thanks for your reply, I think I need to do an accounting course, because it looks as though I’ve had no clue how to use this programme or do our books. It’s a micro business a few clients pay for services or projects (web work) and some farm stuff, nothing big. Simple money in, money out, but the credit card from time to time doesn’t get paid off.
I’ll just have to try and setup as another business from scratch and see if I can understand it, otherwise I don’t know what I’ll do.
I hired someone years ago to do our books, an accountant, she botched them. Then my husband did a simple spreadsheet and never kept it up to date.
I thought this was my answer it seemed clear but I’m now thinking it’s about as clear as mud.
I stopped using MYOB because it was geared to people who had undertaken accountancy courses.
I’ll need to re-read your post Tut and see if my poor head can stop spinning with panic that I have entirely done this wrong. But thank you for your answer.
If you know little about accounting, it will be difficult to understand how to use Manager. Like all tools, you must know what it is supposed to accomplish before you can use it effectively. I suggest starting here: https://www.accountingcoach.com/. It is free and has good examples.
between the bank account and the credit card account.