I have made a ‘receive payment’ on an invoice that was set up as a Billable Expense. However, I now see that the payment is sitting in the ‘suspense’. It also shows the amount in ‘Billable Expense - invoiced’ and ‘Billable Expense - cost’.
I understand that these two amounts are the same and cancel each other out as ‘income’ and ‘expenses’ respectively, but I dont understand why the amount is also shown in ‘suspense’.
I read somewhere that the ‘receive payment’ should be in ‘accounts receivable’ and not Billable Expenses, but I dont seem to have that option…perhaps this is the reason for the amount sitting in expense?
First, there is no such function in Manager as “receive payment.” Second, no sales or purchase invoice can be “set up as a Billable Expense.” Third, it is not clear whether the payment you say is “sitting in the ‘suspense’” is actually a payment by you for a billable expense or a receipt from a customer against a sales invoice that included a billable expense.
A billable expense amount that is originally posted to Billable expenses is transferred to Accounts receivable when a sales invoice is created. Simultaneously, offsetting amounts are posted to Billable expenses - invoiced and Billable expenses - cost. The receivable is cleared when a receipt is recorded against sales invoice.
If an amount shows up in Suspense, that is because something is missing or incompatible in a transaction. Drill down on Suspense and post a screen shot of the Edit screen for that transaction, whatever it is. And please describe more clearly what you have actually done, using the same terminology as the program.
Firstly, a question arrises with regards to recording ‘Expenses’. When I record a ‘Billable Expense’ via the ‘Expense Claims’ there is a question about who is the ‘Payer’ for a business expense payed from the business account (not the employee account).
As I am the only employee of the business and hold the business account card, when I buy something using the business account card, who is the ‘Payer’? As I am not paying for the item from my own account, it is not an expense to me (employee). If I record the ‘Billable Expense’ as me as the ‘Payer’ the amount goes to the employee clearing account as well as ‘Billable Expenses’ in ‘Assets’. However, if I leave the ‘Payer’ as blank, then the amount is shown in ‘Suspense’ as well as 'Billable expenses in ‘Assets’.
For a small business in which the owner is the sole employee how are expenses recorded (Payer) from the business account that which are not payed from my private account?
The you shouldn’t be using Expense Claims. If the business has an account card, then that business account card should be created under the Bank account tab. All transactions relating to that business account card would be then entered like any other business bank / cash account.
Expense Claims are only for expenses paid out employees pockets, not business accounts.
If you want to have the business account card shown as a liability account, then create a “Custom Control” account and allocate the business card to it. There are several Guides covering this situation.
Yes, the card is for the main bank account, i.e. Bank account tab.
Then I remove the expense claims tab and just use the ‘New payment’ tab for any card usage for this account, this makes sense.
Billable Expense - Then I have made a new ‘Billable Expense’ via the ‘Receipts and Payment’ tab and under ‘account’ set that as ‘Billable Expenses’ - all good.
However, after setting up ‘invoice’ to the customer, the amount is shown in ‘Assets - Accounts receivable’, ‘Income - Billable expenses - invoiced’ and ‘Less Expenses - Billable expenses - cost’ but nothing is shown in ‘Less Liabilities - account payable’.
I seem to have made an error whilst ‘Invoicing’ the ‘Billable Expense’. Any ideas?
@Jason, the only things that show up in Accounts payable are purchase invoices and transactions related to them. If you recorded a billable expense via purchase invoice, it would show in Accounts payable as well as in Billable expenses. This is illustrated in the Guide: Invoice billable expenses | Manager.
According to your description of events, however, you recorded a non-credit purchase with the bank card, so Accounts payable does not enter the picture.
Then the customer has been invoiced for the Billable Expense. Then the next step is to register the invoice with a receipt once the customer pays. The guide does not explain that part?
Should one simply go to - ‘Sales Invoices’ - ‘New Receipt’ and under account - ‘Account Receivable’ (not Billable Expenses)?
Receiving money against a sales invoice that includes billable expenses is no different from receiving money against any other sales invoice. Read the Guide: Record a receipt | Manager.