DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Debit card and Cheques


#1

I pay for motoring fuel by debit card and material with a cheque.
How do I enter these transactions into my accounts without having to issue invoices?


#2

If the expense is paid from business account, then use Bank accounts tab. Specifically a cheque to supplier should be recorded under Uncleared payments column (unpresented cheque is uncleared payment).

See: http://www.manager.io/guides/bank-accounts

If the business expense is paid using personal funds, then use Expense Claims tab.

See: http://www.manager.io/guides/expense-claims


#3

I found the two entries for the bank payments thanks.

The Debit card is a business card and not a personal one, I use to pay for items where a cheque is not accepted.

If I use the Expenses tab will this show that the money came out of my own funds instead of the business.


#4

That’s right, Expense claims are to record business expenses using non-business funds (e.g. owner’s private funds).

You should create yourself as a owner under Capital Accounts tab. Then you can select your name when recording expense claims.


#5

As long as the debit card is associated with the business bank account, you need only to Spend Money from within that account. Because it is a debit card, you can normally consider the transaction to be instantly cleared.


#6

When I use the capital account any payment I have made using the capital account is now showing as uncleared payments. How do I show them as cleared payments?


#7

A capital account isn’t something you spend money from. It’s an equity account that shows how much an owner has invested in the company. In that sense, a capital account is imaginary. The actual money will be held in a cash or bank account. Or capital interests in a company might also be tangibly represented by equipment, inventory, buildings, land, or other assets. In accounting, equity is simply the difference between assets and liabilities.

In double-entry accounting, if you contribute capital in the form of money, you will debit a bank or cash account and credit a capital account. Everything must balance so you know you have done things correctly. If you withdraw money from the company, you will credit a cash or bank account and debit your capital account.


#8

What exactly did you do? Can you specify step by step? As @Tut said, when you use expense claims to pay for something on behalf of the business, you cannot end up with “uncleared payment” under Bank Accounts tab. Unless you have recorded two separate transactions. So what exactly did you do? And what’s the reasoning behind those entries?


#9

I use the Debit card to pay for materials, and fuel for my van. These payments come out of my business bank account. I want these payments to show on my expenses and to be deducted from my bank balance.

I created the capital account as instructed.

  1. I open bank account and select spend money.
  2. Uncleared Payments
  3. Spend money
  4. Select Payee
  5. Select Account (Capital Account)
  6. Member (Business)
  7. Sub account (Motoring Expenses Fuel)
  8. Amount.
  9. Create.
    This is the process I went through.

#10

You are making things too complicated, @Applewood. To buy fuel for your van from a business account with a debit card, follow the procedure you describe, but don’t select Capital. Just allocate directly to the Motoring Expenses Fuel account. This is not a capital transaction.


#11

So to record a payment I make for fuel with my debit card I need only use the expenses tab to do this?
In the payer tab how can I show that it was me who made the payment.
One other question:
In the summary, when I pay money into the bank the cash at bank balance increases OK. Buy when I make a payment from the account (debit card for fuel) the expenses increase the bank balances remains the same.


#12

It’s your personal debit card right? Then make sure this personal debit card is not created as a bank account in Bank Accounts tab. Bank Accounts is only for bank accounts which belong to business.

You are probably making a mistake by creating your personal bank account in Manager under Bank accounts tab and then wondering why balance doesn’t decrease for this bank account when recording expense claim. This bank account shouldn’t be created in the first place.

Expenses from personal debit/credit card are always to be entered under Expense Claims tab. When you do that, select Payer as yourself (capital account).


#13

No the debit card belongs to the business account. I use it for making business payments and sometimes I will use it for personal use (Drawings)

The only bank account in Manager is the business account; I do not have any other Bank account in Manager.
I do not understand when you say not to create the bank account in the first place. If I do not have a bank account how can I put money into the account?


#14

Sorry, I forgot you have already mentioned it was in fact business debit card. In your case, you’d record an expense under Bank accounts tab.

Now, why cash at bank balance doesn’t change on Summary screen? When you record payment under Bank accounts tab, try to record the payment under Statement balance column. If you do it under Uncleared payments column, different account (called Uncleared payments) will be credited. I’m yet to improve Summary screen so uncleared payments show in the same section as the statement balance amount.


#15

Hi Lubos,

I will try that and get back to you.

Regards.
Michael