I’m not sure if I am recording my company expenses properly. When I go to ‘expense claim’ it only seems to properly record the expense if I keep the ‘credit account’ tab on suspense. It properly shows up under ‘less expense’, but also shows up in ‘suspense’.
Am I doing this right or is there another way of inputting an expense? If I change the ‘credit account’ to anything other than suspense it does not show up under ‘less expense’.
Expense claims are only for situations where an employee or the owner pays for something. If an employee pays, s/he needs to be reimbursed from a cash account. If the owner pays, probably no money will change hands, but the balancing entry goes to owner’s capital.
Thanks for the reply! So just to clarify.
Journal entries are for keeping track of company expenses, and expense claims are when individuals (owner/employees) spend money on behalf of the company and need to get reimbursed?
If an employee fills up a company vehicle with $50 of fuel with his own money we would put that under “expense claim”. And in order to balance that would I go to the journal? And if im on the right track here would I then credit or debit it.
Thanks!!
At a basic level, journal entries can be used for any and all transactions in double entry accounting. But Manager provides many additional ways to enter transactions. These are really just shortcuts for frequent types of accounting events. The main thing is to understand that every time something happens, there must be offsetting credits and debits.
Read the documentation at this link first: http://www.manager.io/documentation/expense-claims
You have to set up an account for the employee. The fact that the company owes the employee for the fuel represents a liability. Note, that if the person who buys the gas is the owner, the purchase represents a contribution of capital and goes on the owner’s capital account. In that case, you probably would not actually reimburse the owner.
The expense is recorded as a debit to some expense account, such as Motor Vehicle Expenses. Exactly which one will depend on how you’ve arranged your chart of accounts.