Deposit from petty cash

HELLO
I searched forum and couldn’t find the answer other than "don’t use bank statement imports"
so I ask. here is my question

I deposit to bank from petty cash.
I use inter account transfer than I get amount moved from cash account to bank account
when I import bank statement, there is “deposit” statement.
so my bank account gets double amount of what I deposited.

my work around is not using “inter account transfer” and make “deposit” account under Less: expense
and everytime I deposit, I treat it as spending money. put it to “expense: deposit” account

what is right way to handle imported deposit statement & cash out?
Is there a way to allocate deposit statement in bank account to inter transfer statement?

thank you

You need to use a transaction clearing account.
The Spend Money from Petty Cash gets posted to this account
The Import Bank Statement Receive Money Bank Rule gets posted to this account and cancels out

Read the following: (note its in reverse)
Bank/Cash Transfers are two separate accountings transactions not a single transaction.

  1. Bank Spend Money - Credit Bank and Debit ???
  2. Cash Receive Money - Debit Cash and Credit ???

The Inter Account Transfer feature in Manager allows you to truncate that to a single entry - Credit Bank Debit Cash
However, when importing bank statements and using Bank Rules, the processing of two transactions is still required because (rightfully) Manager’s Bank Rules prevents any allocation directly to other Bank/Cash accounts otherwise you would have duplicate transactions as demonstrated below.

If you substituted the ??? for the opposing Bank/Cash account you would now have:

  1. Bank Spend Money - Credit Bank and Debit Cash
  2. Cash Receive Money - Debit Cash and Credit Bank

The Bank account now has two credit entries and the Cash account now has two debit entries - hence the duplication. So to use Import Bank Statement you just need in the Bank Rule to post the opposing debit/credit entry to a clearing account, where the contra from the Cash Account transaction will cancel themselves out.

  1. Bank Spend Money - Credit Bank and Debit Clearing Account
  2. Cash Receive Money - Debit Cash and Credit Clearing Account

The Clearing Account can be created as either a Current Asset or Current Liability

So the downside of this is that I can no longer allocate the petty cash spendings to their appropriate account (telephone, internet, transport etc) is that correct? While if I use the “inter account transfer” option, I would have to remove all withdrawals for the petty cash account from the bank statement but I could then allocate the money spend from petty cash to the appropriate spending account?

I may have just confused myself right now…

No, this is not correct. Cash payments (note that terminology in the program has changed since this thread was last used) can be allocated to any expense account you wish. That is where money leaving the company is posted. The prior discussion was about how to handle the bank leg of an inter account transfer when importing a statement.

While an imported statement may include withdrawals from or deposits to a bank account where the destination or source was a cash account, such transactions do not represent receipts or payments. That is, money did not enter or leave the business; it was just moved between accounts. Therefore, such transactions are not posted to ordinary expense accounts. Nor would they be if entered as inter account transfers. The technique discussed in earlier posts describes how to handle the fact that a bank statement cannot fully record an inter account transfer since it includes only one leg of the transactions.

In other words, the transaction you see on an imported statement is not the payment for telephone, internet, or transport, even if the money was eventually used for such things. It is only the withdrawal from the bank. You need to record the payments separately from the petty cash account.

Correct.