DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Directors loan account


#1

How do I add a Directors Loan Account?

Thanks


#2

Go to Settings - Chart of Accounts
Under Liabilities - choose new account - add details.


#3

Ok, so how do i add funds to the directors loan account?

Thanks


#4

Because it is a Liability and not a Bank Account, you will have to use Spend Money or Receive Money for the entries.


#5

Hi, I need to also create a directors loan account because I have lent money to the business.
I can’t use “spend money” or “receive money” to record it because I paid the money directly into my supplier pre-payment account, (which I’ve setup in manager as an Asset account.

Could I use a journal to record the transaction?
-would I credit the directors loan account and debit the pre-payment asset account?

many thanks


#6

That’s right, you can record this transaction as a journal entry.

Credit Directors loan accounts and debit Supplier advance payments : [Supplier name]

You don’t need to create asset account for supplier pre-payments manually, just enable Suppliers tab, create list of your suppliers and then you will get special control account Supplier advance payments with sub-accounts for each supplier which is more elegant solution.


#7

Thank you Lubos,
I have enabled suppliers which gives me tabs for suppliers & purchase orders but I don’t see the advance payments?


#8

I remember you mentioning that supplier pre-payment was something you were going to implement but I hadn’t seen it available yet.

Sorry Lubos, I stil dont see the advance payments account.
-I’m using version 14.2.0

EDIT: I’ve just upgraded to 14.2.47 and enabled the suppliers …but I still can’t see a supplier advance payment account, it doesn’t appear in chart of accounts or any of the dropdown lists on journals.


#9

When Suppliers tab is enabled, you will get new account called Supplier advance payments which you can use to categorize any prepayments to suppliers.