With the last accounting software I used, I would “write checks” to a supplier that I had paid which would then show in the bank transactions of my bank account. I never tried importing bank transactions directly from my bank’s website.
Started using Manager last week. I wanted to try the importing feature so I imported one bank transaction to see how it worked. It was extremely easy to do.
But because it was a payment to a Supplier/Vendor, I made a Purchase Invoice for the service that I had paid for. That’s when I saw that the Retained Earnings was showing both the imported bank transaction and the purchase invoice amounts, making the retained earnings a doubling of the same transaction.
I have to make a choice on whether to import the transactions from the bank website or make purchase invoices (or sales invoices). As of right now, all of the “spend money” and “receive money” occurs at the time of the sale.
Is there a preferred way: importing bank transactions OR making purchase/sales invoices?
If you are creating Purchase Invoices, then the imported bank statement would be used to pay that supplier’s purchase invoice, not be posted to the expense account as the purchase invoice has already done that posting.
As to the preferred way, would depend on your business - are you selling/buying on credit (sales/purchase invoice) or selling/buying for cash (receive/spend money), or you could have a mix of all four.
If selling on credit you would always create the Sales Invoice and then you have the choice of either Receive Money or imported bank statements when you receive the payment.
If buying on credit you would always create the Purchase Invoice and then you have the choice of either Spend Money or imported bank statements when you make the payment.
For cash selling / buying you have the choice of either Receive / Spend Money or just the imported bank statements.
Part of the answer lies in when do you want to see receipt/payment information in Manager, as it happens or at the end of the week / month when you do an imported bank statement.
But as a general rule either use Receive / Spend Money or imported bank statements but not both unless are prepared to delete any duplicate transactions.