DESKTOP EDITION CLOUD EDITION SERVER EDITION GUIDES FORUM

Expense not shown when purchase invoice is paid


#1

I’ve booked an purchase invoice, and marked it as fully paid. Why is it not showing as an expense? If I make a separate journal entry of it, it is deducted twice from my bank account. What am I missing here?


#2

You should post screenshot of purchase invoice form and then report where you expect the expense to show. So we see input / output.


#3

I hope these screens make my issue more clear:

Thanks for your help by the way! It is much appreciated!


#4

One thing you need to always keep in mind is that Manager is double-entry accounting system. That means every transaction in Manager debits one or more accounts and credits one or more accounts and debits always equal credits.

So let’s break-down what you’ve done in terms of debits and credits and let’s see if anything should be shown under expenses as a result.

So first you’ve recorded a purchase invoice which is in terms of debits/credits recorded like this:

                                            Debit       Credit
--------------------------------------------------------------
Liability : Accounts payable                            242.61
    Asset : Stock                          200.50
    Asset : Tax paid (BTW 21%)              42.11
--------------------------------------------------------------
                                           242.61       242.61

Then you’ve recorded payment of 242.61 against purchase invoice above which is in terms of debits/credits recorded like this:

                                            Debit       Credit
--------------------------------------------------------------
Liability : Accounts payable               242.61
    Asset : Cash at bank                                242.61

So what happened is that Accounts payable is back to 0.00 (you don’t owe your supplier anything anymore), your bank account balance has been decreased by 242.61, you have 200.50 in stock and 42.11 in tax credits.

The reason why you don’t see anything under expenses is because none of these transactions incurred any expense from accounting point of view.


#5

Thanks for your help!