When we lodge expense claims with the Payer being the company and Payee being people who spent their money on the business related activities. Manager has been cancelling the claim once we pay it from the Bank as shown in the attached picture
. However, this changed and now when one lodges a claim, Manager automatically cancel the claim on the same day before the payment. This leads to double payment when the actual date of payment as it appear on our bank statement is captured. Please see the pic. This lead to a credit sitting in expense claims where the system has double paid for each claim. Are we capturing this incorrectly or what is happening. This has since been happening for all expense claims. Please assist as this is messing up the books.
Looking at your first screen shot, why do you have both black & red figure Expense claims ?
What you should have is black figure Expense Claim and red figure Payment as below
So how are those red figure Expense Claims being created ? They shouldn’t be there.
The steps should be:
- Create the Expense Claim - Debit various Expenses & Credit the Expenses Claims account
- Pay Expense Claim by Spend Money - Debit Expenses Claims account & Credit Bank account
This is part of the problem that is confusing. some payments are in black and captured as expense claim as opposed to the payment although they were raised by spending money at the bank. The the red expense claims were created in a way I don’t understand. I have asked repeatedly my Finance Officer and she says she pays all expense claims from the bank. So basically there is a duplication of payment per transaction, one being captured as Payment and another as Expense Claim.
You don’t raise Expenses Claims by Spending Money, you raise Expenses Claims by using the Expense Claims tab. You only use Spending Money when you are paying out the Expense Claim.
They appear to be “negative” Expense Claims ???
Can you please click on the “EDIT” for the following entries and then post the screenshots.
The Expense Claims refer to Traveling Expense - Does this account have a single related entry or two related entries cancelling themselves out?
Just re-read this - The Payer shouldn’t be the company - it should be the person who spent their money on the business related activities. The Payee is the person/business who they made the payment to: e.g. car hire would be Avis or Hertz etc.
Please see how the edit screenshot of the red expense claim
. It is being automatically created when a proper expense claim is being raised. And yes we raise all our expense claims on Expense Claim account and pay them at the Bank by spending money as shown in the pics below
As for what I meant by a Payer is, to our system, an expense claim is a collection of receipts from spending personal money that the organization needs to pay back to you. Therefore the company becomes a Payer of the money pack to the person who expended their personal money and therefore that person becomes a Payee. Is this interpretation wrong?
Okay, I can see your problem.
You have made the Payer - Lugaju, but you have also made the Account - Expense Claims - Lugaju.
This cancels itself out - The Payer is the black figure and the Account is the red figure shown in the account.
The Account should be the expense - Travel Expenses, Entertainment.
Yes, for Expense claim purposes the Payer is the person who actually spent the money. The Company reimburses/refunds the Payer