I am new to manager and I have entered most of my accounting data including expense claims by the owners which needs to be reimbursed from cash on hand account as it is not supposed to be part of the capital investment into the company.
So now how do I issue payments from my cash on hand account against a specific expense claim and mark that claim as cleared? Please remember that I am new to this program and I want a for dummies version explanation as in click this button then this button then this button.
I would really appreciate help in this subject. As I have wasted a lot of time trying to figure it out.
In setting up the owners did you use the Capital Accounts tab, if yes, then are the expense claims showing up under Capital Accounts (do a Capital report), if yes, then you can’t actually mark that expense claim as cleared because of the way Capital Account - Expense Claims are processed by the programme - read the topic below
Therefore to repay the owner’s expense claim you would :
Cash on Hand - Spend Money - Account = Capital Account - Owner - Drawings.
This has the effect of reducing the capital account as if the expense claim had been paid.
Thank you for your response. What if I set up an employee file for the investors and put the expense claim under that? I tried to create an employee and assign the expense claims to the employee, but I am still unable to figure out how to process the expense claim.
You would be better off just setting them up as a stand alone Payer : Settings - Expense Claim Payers : then the expense claim would be posted to the BS - Liabilities - Expense Claim account so any payment would be a contra into that account.
Using the employee set up would cause the expense claim to be posted directly to the BS - Liabilities - Payroll Liabilities account.