After entering a Partners Expense claim the liability is posted directly to the Partner’s Capital account (rather then sitting as a balance in the BS Expense Claim account - which is good). But any actual payment of the claim can’t be matched against the Expense Claim itself
Expense Claim
Capital Account (NOTE - the balance is black rather then blue so can’t be drilled down)
Capital Report
Expense Claim Payt (NOTE - sub account drop down doesn’t have Expense Claim option)
Capital Report
That’s actually indented behavior. Sub accounts on capital account report just explain movements in partner’s balance. You don’t really want to clear those movements so you can see how much partners has contributed in funds, how much he claimed in expenses, how much he has received from partnership and finally how much profit or loss was distributed to the partner.
Kind of understand - “indented behaviour” must be accounting modernisation.
Surely, getting reimbursed for an out of pocket Expense Claim, isn’t a negative Funds Contribution
Your points would be more understandable if the expense claim payment went to a Drawings sub-account, but that sub-account seems to have been deleted.
I agree, you shouldn’t be posting negative amounts to Funds contributed. Then you can’t see total how much partner has contributed.
Anyway, technically I can make it possible to debit/credit expense claims sub-account of partner. It’s just that once you start posting entries against this sub-account, you won’t be able to see total expense claims for partner.
The Drawings sub account use to/could collect such payments and keep the separation.
Is that such a requirement ? if so, then the Drawing sub-account re-instatement would enable
a) total expense Claims
b) total funds contributed
c) total funds withdrawn (including reimbursement of expense claims)
d) total share of profits
Yeah but if you don’t like to mix drawings and reimbursements, then you can always go to Settings, then Capital Subaccounts and create new sub-account called Reimbursements.
Just for the record, I don’t have a strong opinion on whether user should or should not be able to directly post to Expense claims sub-account.
Perhaps the right question to ask is whether there is any reason a user should not be able to post directly to Expense claims. If I am following this discussion correctly, the problem only arises when the expense claim payer is a capital account owner, rather than someone who has been created specifically as an expense claim payer, right? In the latter case, it is possible to clear directly to Owner's equity (renamed from Retained earnings), for example. Or you can Spend Money for reimbursement and allocate directly to Expense claims. Why shouldn’t you be able to do the same things for capital account owners who submit claims?
Oops, had completely forgotten that I (all by myself) had deleted the drawings sub-account as part of another topic response. so one can ignore most of my own self inflicted argument.
So starting again, a partners expense claim being processed directly to Capital accounts is good, but to an active sub account rather then hard coded allocation. Hard coded makes it perpetual - is it relevant what value of expense claims has been made over 10 years.
As a management tool, currently the Partners could track drawing taken over a year and then transferred them to Funds Contributed as a year end adjustment ready for the next year. With Expense claims allocations being hard coded (locked up) there are no management tool options.
Therefore it is suggested that it would be best for Expense Claims be added as a default Capital Sub-accounts.
Not currently, as Expense Claims Payer’s don’t have a COA allocation as part of their creation.
It appears your quote of my last post was modified to turn my statement into a question. I was not asking whether it was possible to clear an expense claim directly to Owner's equity, I was saying it is possible. You are correct that expense claim payers don’t have a COA allocation as part of their creation, but one isn’t needed. A journal entry very conveniently clears the liability to an Owner's equity account–not a capital account. I do it at the end of every month. (As I said in the post, this works when Retained earnings is renamed as Owner's equity, so it is useful only for sole proprietors.) While things are slightly more complicated with other forms of business organization, the major point of my post remains valid: why not allow allocation to the Expense claims account. I believe that is the position you’ve been advocating.
If expense claim payers did have a COA option then your monthly Journal wouldn’t be required
[quote=“Tut, post:9, topic:6296”]
why not allow allocation to the Expense claims account. [/quote]
By having Partner expense claims going directly to the Capital accounts and Employee expense claims going directly to the Employee Clearing Account totally eliminates the need to re-allocate these types of Expense Claims later via Journals. Removing that additional step is a positive move.
No, I’m not advocating, returning to the position of where all Expense Claims must end up in the Expense Claim account and then having the requirement of Journals to re-allocate.
I was questioning with regards to the Partner Expense Claim the inability to offset a payment against an Expense Claim. If you review the Capital Reports above. The first report’s Expense Claim of 10 is a direct result of the Expense Claim shown above it. In attempting to pay 5 out of Petty Cash towards that Expense Claim there is currently no way that that payment can be used to contra that 10 balance as shown in the second Capital Report.
Therefore I’m advocating that the Capital account Expense Claim transaction be posted to a Capital sub-account like Drawing etc, so it can be fluid rather then fixed and un-adjustable.
