Expense claims don't reduce balance of cash on hand


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 accounts represents cash held by business such as cash float, petty cash etc.
  • Expense claims represents 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.