I want to know if i received a temporay fund on behalf my customer “A” and i have pay to a suppliers “B” on behalf “A”. But i just keep A’s money in my USD A/C and pay from my own HKD Cheque A/C.
Can i enter the transaction as follows in Manager?
Dr. USD S/A - US$500.00
Cr. Temp Funds Received - US$500
When i receive the USD from A
Dr Temp Funds Received - USD$500.00
Cr. HKD C/A - HKD3,900.00
When i pay to Supplier B
And use this to write off the balance of Temp Funds Receivd, If it is impossible please advise the correct procedures.
Unsure why you want to use a Temp Funds Received account ?
The problem I see with the above examples is that neither the payment from Customer A nor the payment to Supplier B’s is being recorded against their respective customer / supplier account.
If you have invoiced or you are going to invoice Custom A for a sale inclusive of that 500, then their 500 payment (based on the example) hasn’t been posted to their account to be matched against such an invoice and the same would apply for Supplier B.
Normally you would:
Dr. USD S/A - US$500.00
Cr. Customer A Account - US$500
When receiving from A
Dr. Supplier B Account- USD$500.00
Cr. HKD C/A - HKD3,900.00
When paying to B
Noting that Supplier B’s account could be nominated as being based as either USD or HKD.