I think I’ve had one of those light bulb moments.
I have been failing to understand that if I (as a owner) was creating expense claims, these were outstanding until they were journaled or otherwise cleared. I understand the need for doing this for employees, but as an owner, it’s just my contribution to making the business run.
I think the problem stemmed from creating myself as an expense claim payer and not utilising the
members part of the
payer field and selecting my
owners contributions capital account. Instead I was selecting my name which had been set up as an
expense claim payer.
When I use that, there is no outstanding expense and it becomes a part of retained earnings.
So with the exception of a use case scenario where I wanted to be reimbursed for some particular expense for whatever reason, would it be safe to otherwise say/assume that:
- any contributions made by an owner should (generally) always be entered against the owners capital account, and
- owners shouldn’t necessarily be expense claim payers