Manager doesn’t allow accounts under the Cash on Hand and Cash at Bank tabs to be adjusted by Journal.
Bank/Cash accounts track the movement of actual money - deposits (receipts) and payments. Journal’s relate to non-monetary transactions as no actual money is being moved.
With Bank accounts, if journal entries were permitted, reconciling with the Bank Statement would be impossible, as the Bank could never have any knowledge that the journal existed - Banks only have knowledge of your monetary deposits and monetary payments.
Therefore it would be impractical to allow Journals and also have bank reconciliations.
Please pardon the intrusion.
How do i balance my records in a situation where we issue funds to a branch/staff from cash or bank, then expenses are made, and there is a balance brought down for the next day transaction and more funds are given the nest day. With record expenses and balance and so on.
I used journal entry for this in 2019, and my account is in shambles. I learnt Journal entries cannot handle this and it has to be cash or bank for all payment.
- How do i go about this in the post for cash/bank seeing i have some balance brought down from the day before.
- How do i record it when there is a balance, and more cash is disdursed and there is a balance for the next day. Where and how do i record the balance brought forward to avoid double entry.
- If i am to use suspense account, how do i go about it to capture such expenses and reconcile it later.
- Hoe do i used petty cash with the cash and bank.
- what then is the role of journal and ledger in this transaction. Is it irrelevant?
Please assist so i do not make the same mistake in 2019.
It sounds like you are referring to giving the branch/staff actual physical money—bills or coins. For each branch, set this repository of money up as a cash account. To transfer money to the branch, use an inter account transfer. When the branch spends money, enter it as a normal payment from the cash account.
Never use the Suspense account. That is where Manager temporarily places incorrect or incomplete transactions until you fix them.
Journal entries have no role in such transactions.
There are Guides covering all these issues. Use the Search function on the Guides page to find them.
@Eby77, you have two options.
1 - Operate a Cash Account, much the same way as you do for any other Cash/Bank Account where you record all transactions going in and out including the Inter Account Transfers.
2 - Operate a Petty Cash Float where you have a fixed amount (say 500) which you are always reimbursing back to. First you set up the float (Petty Cash Tin) with a payment from the Cash/Bank Account and this gets posted to a Asset > Petty Cash Float account (doesn’t have to be a Cash Account).
Now let say that 240 was spent on expenses. You would do a single daily Cash/Bank Payment transaction which details all the expenses making up the 240. If you are using a Bank account - then this would be like cashing a cheque.
The Petty Cash Tin returns to 500. The advantage of this process is that you only need to do one transaction per day, the reimbursement, compared to (1) where you could be doing a transaction for every expense item plus the Inter Account Transfer.
Thanks for your response.
What if i disburse 200 usd. And they spent 180 usd from it. How do i register the balance 20 usd in the account. its a balance brought forward. can i create a special account for it then balance it out later. What is the best way to handle it.
@Eby77, I am not sure I understand your question. If you follow the procedure I explained in post #3 and transfer money into a cash account, you do not need to “register” the balance of 20 USD. After recording a payment from that account of 180 USD, the cash account will still have a balance in it of 20 USD. This is not a “balance brought forward.” This will be the remaining balance of the account.
If I am misunderstanding what you are asking, please explain in more detail.
What i mean is that we have 3 branches. Each branch is sent some funds 100 usd And after each days expenses, there is cash left over of 20 usd, meaning they spent 180usd. The next day, another cash is of 300 usd is sent for further expenses. so the cash with the office is now 320 usd for the next day.
Question is :
how do i register the 20 usd in the records as it is still withe branch.
How do i capture that the branch had 20 usd left over and another 300 usd was given to them making 320 usd for the next day’s expenses.
How can i capture in the cash account that 180 usd was sent today, and a balance of 20 usd is left over and another 300 usd was sent again to them.
I already explained this. If you transfer 200 to a branch’s cash account and they record payments of 180, there will be 20 remaining in the account record in Manager. If you transfer another 300, the balance of the cash account will be 320.
The date of the transfer records this.
The inter account transfer of 300 will record the date and amount of the second transfer.
I suggest you create a test company. You can have as many businesses as you want in Manager. Enter these transactions as examples and see how it works.
Thanks a lot. I will give it a try
The balance is a running total, not a brought forward total.
Thanks alot. I did not put it in this perspective. I will implement it this way.
very grateful to you and tut