When i create a billable expense, i do this according to your guide. Problem is i don’t know how to book it when it’s paid. (don’t know how to describe it in an other way). I will give an example.
I make a billable expense of € 10,–. I put this on the invoice the same day i made the billable expense.
I paid the billable expense with a credit card and i get the bill of the credit card once a month.
so the problem is a make the invoice to my customers let’s say today, and the bill of the credit card comes a month later. How can i book the amount of billable expenses that is on the credit card against the billable expenses?
Hope it’s clear what i mean
THNX and keep up the good work!! love the program.
When you pay a billable expense, enter it as a payment from the bank account you have set up for the credit card. Post the transaction to Billable expenses and the customer’s subaccount. This debits the Billable expenses account and credits the bank account. That is what is described in this Guide: Manager Cloud. From this point forward, the billable expense has nothing to do with the credit card. The only relationship between the two was taken care of by recording the payment.
When you create a sales invoice from the Customers tab, Billable expenses is debited, removing the expense from that account. Accounts receivable is credited, transferring the expense there. This is described in this Guide: Manager Cloud.
When the credit card statement comes a month later, use an inter account transfer to record paying it. This transaction moves money from one bank account (probably a checking account) to another (the credit card). No new expense has been entered; that was taken care of when you entered the credit card payment in the first step. Your total Cash at bank balance does not change, because from an accounting perspective no money has left the company. You have just moved it from one account (the checking account, which had a positive balance) to another (the credit card account, which had a negative balance).
This may seem confusing, because it did not “feel” like you were spending money when you made the credit card purchase. But you really were. The credit card was the source of the funds. Your arrangement with the credit card issuer can be thought of as putting some delay in the process. In this respect, using a credit card was somewhat like writing a cheque: there would have been a delay between the moment you wrote the cheque and when it cleared your bank.