Hi,
I can’t for the life of me figure out what to do.
Financial year ended 31/3/21 I have an accounts payable amount which I paid by credit card.( not thru the Bank Account) What entries do I create to clear this account payable as when using Expense Claim I am unable to clear the transaction thru Accounts payable.
Many thanks
Grandpa
You have not provided enough information to answer definitively.
Is the credit card set up as a bank account? See Set up credit cards | Manager. In that case, you would enter a payment, posted to Accounts payable, just as if you paid from any other bank account bank account. You would later use an inter account transfer when you pay off the credit card statement.
What does an expense claim have to do with this situation? If you bought something for the business with a personal credit card, you would in fact enter an expense claim. But then you would not have anything in Accounts payable, because you would not have entered a purchase invoice. See Use expense claims | Manager.
The Expense Claim module is for situations where you pay for expenses on behalf of the business. It is a form of accounts payable for personal transactions. I do this regularly since I only have a personal credit and debit card for paying retailers (i.e. I don’t have a card attached to my business bank account).
The transaction is:
Dr $$$ Expenses (P&L item)
Cr $$$ Expenses Claims (Balance Sheet item)
This gives a liability of $$$ on balance sheet. Expense claim amounts may accumulate. To clear the liability, you pay yourself using the ‘Payments’ button under the ‘Receipts and Payments’ module, and make the physical payment). The transaction is:
Dr $$$ Expense Claims (Balance Sheet item)
Cr $$$ Bank (Balance Sheet item)
If you haven’t set up the Expense Claims module, do the same as about except the transaction is now:
Dr $$$ Accounts Payable (Balance Sheet item)
Cr $$$ Bank (Balance Sheet item)
Cheers… Richard
Hi Tut
Thanks to you both for help.
Cheers Grandpa