Multiplied expenses

1

I bought a product from a supplier.

1- I went to "Bank Accounts" tab, clicked on "Spend Money" and issued it under the "Accounts payable"

2- And, as I want to show that amount was paid from my capital, I also went to "Expense Claims" and claim an expense under the "Accounts payable".

Now, I just wonder to see if I’m gonna multiplying expenses in the Manager or not.

2

It doesn’t seem to make sense “Paying” for it twice, once from bank and once from capital.
How did you actually pay for the product - with business money or private money.
Did you pay at the time of the purchase or did pay the invoice latter
Are you a Sole Proprietor of a Registered company

Sole Proprietor or Company with business money
a) At the time of the purchase - Spend Money and Expense account
b) Purchase and payment separate - Purchase Invoice with Supplier and Expense account then latter Spend Money and Accounts Payable with Supplier.

Sole Proprietor with private money
c) Expense Claim and Expense account then with a Journal , transferring the expense claim to Equity

Company with private money
d) Expense Claim and Expense account then with a Journal, transferring the Expense Claim to shareholders loans

The way you have described it above has probably ended up like this:

  1. Credit Bank and Debit Accounts Payable
  2. Credit Expense Claim and Debit Accounts Payable
    Double Debit to Accounts Payable, no expense account and no equity (or shareholders loans)
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3

Thanks Brucanna for every details.

  • Actually I paid for the product with private money (which provided from the capital accounts of two persons) - (and that is why I was trying to somehow show their investment in the business)
  • I paid at the time of the purchase.
  • And I’m handling a very small company.

Thanks again

4

What do you mean by “capital accounts of two persons”?
Are these capital accounts inside or outside the company?

Does this company have issued shares?
If yes, are these persons existing shareholders or will this investment make them shareholders?
Or are they just providing loans to the business which will be repaid in time.

These questions need to be correctly understood so the monies are recorded the right way.

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5

@torabian, from an accounting perspective, private money and capital accounts of owner/partners are not the same thing. Capital accounts represent money inside the company that has been contributed by owners/partners to fund operations. To be considered private or personal funds, the money would have to literally come from your own pockets.

Expense claims are used to records payments on behalf of the company from personal funds. The claims are allocated to the appropriate expense account.

Anything paid from a company account should be recorded under the applicable bank or cash account, allocating the transaction to an expense account.

A purchase invoice only needs to be used if you will pay a supplier in the future. The supplier must be created first. Again, you allocate the transaction to an expense account. Manager automatically credits Accounts payable for the supplier involved. After a purchase invoice has been created, you can Spend Money from a company account to pay off what you owe the supplier. Only then would you allocate a Spend Money transaction directly to Accounts payable.

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