I had a problem in my cash on hand account. When I make an expense claim then the amount should be deducted from cash on hand account so that the cash on hand account should actually represent the amount of cash on hand but it is not happening in manager. How to solve this issue ?
There seems to be misunderstanding what
Expense claims are.
Cash accountsrepresents cash held by business such as cash float, petty cash etc.
Expense claimsrepresents expenses paid by third-party (e.g. business owner or employee) on behalf of the business.
In other words, expense claim is not to reduce balance of cash account. If you paid out of cash account such as petty cash, then go to
Cash accounts tab and
Spend money in that tab.
If you paid out of your own pocket (e.g. personal cash or personal credit card) on behalf of the business, you record this payment under
Expense claims tab. The idea is that expense claims are also business expenses even though they don’t reduce balance of business bank account or cash on hand.
I understand that an expense claim wouldn’t reduce the bank balance or cash on hand but 1. is there a total it SHOULD effect when entered? and 2. if it’s the sole proprietor that makes the expense claim and the one that should be paid back, what total would that reimbursement change? Thank you.
Creating an expense claim will usually increase an expense account and increase a liability account - the amount owed to the expense claim payer.
The payment of an expense claims reduces the liability and the reduces the cash/bank account
@cindytaylor, I linked the Guide on expense claims to you in another post: Unemployment income - #18 by Tut. It looks like you may not have read it.
You are responding here to a 7-year old topic. I am closing it.