Firstly I have to say, I love this package. It really is brilliant for any small enterprise. What I have a problem with at the moment is that I’ve made 2 payments to a creditor, and my accounts payable section on the summary page does decrease, but the Less Other Liabilities section (which has the breakdown of each creditor) does not decrease as payments are made. If I subtract the Accounts Payable total from the Other Liabilities total, I get the total amount of all payments that I have made, but even after paying an invoice in full, the Other Liabilities section still shows the total that I have spent at each Creditor. Any assistance in solving this problem would be appreciated.
What do you mean “Other Liabilities” section has breakdown of each creditor? When recording actual payment to creditor, what account did you use to apply funds to? Accounts payable, Supplier credits or some other account?
What I do is click on View for the invoice to be paid, then I click on Spend Money, select the account from which the payment is made, fill in the amount, and click Create.
I actually misread your question. I don’t see any issue.
Not sure what you mean by breakdown of each creditor under “Other liabilities” since total of how much you owe suppliers is represented in “Accounts payable” section so if that amount decreases after paying suppliers, it’s all good.
The breakdown how much you owe each creditor is under Suppliers tab.
Let me try to explain it in another way. Under Less Accounts payable are the amounts for
Current
1-30 days overdue
31-60 days overdue
etc.
Beneath that block is the Less Other Liabilities listing all accounts to pay.
The first block has the correct amount that I owe in total to my Liabilities, and when I make a payment, the amounts decrease.
Where the problem lies is the second block. Each liability account has the full amount that I have spent.
eg, I owe R500 to a liability from an invoice opening at R1500. Under the Accounts payable it shows R500 under the current amount, but under the Other Liability block it still shows I owe R1500.
What account name under “Other liabilities” does have balance of R1500?
The name of the Liability (the creditor from whom I purchased)
That account shouldn’t even exist. Your creditor is represented within Accounts payable account (or section).
Whatever you have under Other liabilities shouldn’t be there at all. Don’t create names of suppliers in your Chart of accounts.
Thanks Lubos. After removing those liability accounts I was left with the total under the suspense account and realised I could now allocate those amounts to the different expense accounts where they actually belong. Can’t believe I didn’t figure this out myself. Just for future reference, what accounts would a person then create under the Liability under the Chart of Accounts?
Small business rarely needs to create any liability accounts directly in Chart of Accounts. One example would be if business borrows money from some unrelated party, then the loan account should be created as liability account.