Essentially the difference between the two are 1) you are keeping Expense Claims completely separate from Capital Accounts and their associated capital contributions, drawings, and share of profits components whereas with 2) everything (as above plus expenses claims & reimbursements) goes into the one melting pot.
Not so sure about the extra work - besides creating duplicate names (partner & payer) everything else is the same - you create the expense claim and you pay the reimbursement.
But as your stated aim is “I really want to pay the reimbursement” then I suggest using the Payer option - then you only have one Expense Claim liability account to manage/reconcile. If you go via the Partner option - then you will have each partner’s capital sub-accounts to manage/reconcile - now that is extra work
Great response indeed! This actually solves my immediate problem. And plus it saves me a great deal of time when reconciling Perhaps before I let you go, one more offhand question, but kinda related to the matters we’ve discussed previously.
So I want to maintain a clean capital account, free from expense claims, and only servicing contributions by each partner after share of profits/dividend/loses. Thing is, when a partner elects to withdraw part of his or her contributions (there is an agreed limit that restricts each partner from having a capital account balance beyond it), how are they paid? And does such a payment reflect and if so, where and how?
You would Spend Money and for the Account select Drawing as per the following
The payment reflects in the Partner’s Capital balance, but to see it you need to go to Reports and create the Capital Accounts Report - there is no blue balance to drill down.
Tip: so that Funds Contributed appears before Drawings in the reports, edit the Settings - Capital Subaccounts from “Funds Contributed” to “Contributed Funds” - alphabet order
Hello guys, @Tut, @Brucanna. So for not getting back, I did try but had expended my Limit for replies, something to do with being a new member on the forum. However, I managed to create everything from scratch, including the separate expense payers accounts for each partner. The expense claims are now able to be displayed as liabilities in the Expense Claims tab of the BS.
However, I seem to have ran into another problem; Even though after paying the liability is removed from the Expense Claims tab, and instead sequestered to the correct expense accounts, the Petty Cash displays in the accounts tab of the payments, “Suspense.” Why is this the case?
To demonstrate, this is what I have done: created the expense statements denoting the appropriate payer and expense item, for example, “Meals and Refreshments and Costume Materials.” After that, I have gone to the Petty Cash and clicked spend money, after which i have input the account as the Expense Claims Liability thereby effectively absorbing due liability.
So what have I perhaps done incorrectly? Is there a harm in the petty cash transaction displaying suspense, even though overall in the summary page everything is okay? Kindly find uploaded screenshots for reference.
What your screenshots are showing is two problems 1) the suspense account against the expense claim payment and 2) the Starting Balance Equity account against the Starting Balance entry and being displayed under BS Equity section, is not correct.
On (1), I can reproduce this so that appears to be a possible bug. Even though the Petty Cash has the correct Account line, the Petty Cash transaction listing displays “Suspense” - while this seems to be incorrect the actual processing of the transaction has been done correctly
The Petty Cash Spend Money
The Petty Cash transaction list
For (2) it appears that your Starting Balances are out of balance, Earlier you wrote “I withdraw money from my bank account and credit the petty cash”. How did you do that transaction and was it done before or after your start date. If after, then it shouldn’t be part of the starting balances
Thanks for the response @Brucanna. Well, if you are referring to my very first post whereby I withdrew money from bank account to petty cash, then allow me, please, to politely inform that after all the trouble with the Expense Claims module, I deleted my business, re-installed Manager and began afresh, thereby effectively eliminating this particular transaction.
So having began afresh, I thought it best to debit the petty cash with the starting balance, since it was quite minimal and was literally on-hand. For clarity, I should say that am on the accrual basis, and my start date is 1st of August, 2016. So this is the same date that reflects as true for the Petty Cash starting balance equity.
The first expense claim was generated on 7th, while the second claim on 10th. Consequently, the former was paid from the petty cash on 7th, while the latter on 11th. Is there something wrong in this transaction? I would assume that a claim can be generated and settled on different dates; or should the date of the claim match the date of it’s settlement? Please advice, thanks.
Claims can be generated and filed on different dates. Everything you said you did sounded correct, but I think you might not have completed the transaction entries. See below.
Yes, there is harm. The presence of a transaction in Suspense means it is incomplete, incorrect, or unbalanced (debits do not equal credits). But I cannot decipher your problem from what you have shown. Your Summary page does not show a balance in Suspense. Yet your Petty Cash register clearly shows two transactions defaulting there. I wonder if when you spent money to settle the expense claims, you allocated the transactions correctly to the Expense claims liability account but did not choose the subaccounts of the Payers. So Manager may be stuck in the middle, knowing enough to credit your Petty Cash, but for some reason not showing the transaction in Suspense. It shouldn’t do that.
To figure this out, can you post a screen shot of the Edit screen for the 525.00 transaction on 07/08/2016?
Thanks very much @Tut. Okay, would you, perhaps, accept the one for 500.00 for 11/08/2016? The requested one contains sub-lines that take up vital screen space in the shot. The 500 one still of the same Payer and can stand instead of the 525.00 one. I have elected to afford both the expense claim edit screenshot ad that of the petty cash too. Please fins them below. Thanks.
@Writer-Typist, I think you’ve uncovered a bug in the program. I am inviting @lubos to join this topic to have a look.
You have done everything correctly as shown by your last two screen shots with one minor exception. The Payee on the expense claim should be the person or business to whom the Payer made the payment, not your own company. The expense claim is the Payer’s claim to your company for the amount he paid to that person or company. But this small error will have no impact on your accounting. It merely means that you cannot tell who the Payer paid. An auditor would not like that.
The apparent bug comes when the expense claim and settlement are entered against the correct accounts but the cash account register shows the transaction going to Suspense.
When I saw this situation in your screen shots, I looked through my own records and found exactly the same thing. I had never noticed it because it does not show on the Summary page in Suspense. Nor should it. But the cash account register should show some account besides Suspense.
This matter has made me repeat the process over and over again hoping for different results and I am glad it has cropped up. I feel both relived and anxious at the same time.
Anyway, regarding the “payee” matter on the expense claim, I was actually battling with who it should be, switching in between the vendors who actually received the cash and my company. Thank you for clarifying.
Great to know @Lubos and thanks. If you don’t mind my asking, is this latest version contained on the website, or is this a component release to be downloaded separately. Sorry, I’m new to manger and not quite familiar with how to upgrade from version to version.
Just download and install from the web site as you did originally. Depending on your operating system, you may be asked whether to save both versions or replace. Only the program is replaced. Your data file is not touched, though it’s always a good idea to back up before updating.
Regarding this post, could you please elaborate on recording expense claims from a partner when a partner pays for inventory for resale? Is this a reimbursable expense to the partner? And then how do you record the inventory?
Thank you
Hi guys,
I need to open up this Capital Accounts story again.
I have partner expenses which are posted to the Capital Accounts - no problem.
But when partners need to put money into the business I cannot see how to post that to the Capital Account.
I wanted to invoice the Partners - but I’m guessing that is not correct accounting procedure? In the invoice module there is no option to post to Capital Accounts only Equity accounts.
Please advise how I can bill a Partner and offset any expenses the Partner may have made, which are appearing in the Capital Account, and keep an up to date Partner balance in the Capital account.
Ciao
Neil @Tut@lubos
Perhaps before I let you go, one more offhand question, but kinda related to the matters we’ve discussed previously.
