Hope someone can help please. I've just started using VT and wondered if someone can help. I have a client who has been paying for purchases etc through his credit card and not always through his business bank account. He's a sole trader. Probably a stupid question, but just checking how I should enter these transactions. Should they go through as petty cash or is there something in the software that I'm missing.
There are severals ways that they can be handled. It depends on what level of tracking you want.
First option would be simply to Journal DR all then expense receipts Cr Capital introduced
Second option. Create a dummy bank account Proprietor Payments, make payments from that account to "pay" the expenses. At year make a payment to the account from Capital introduced to clear the account
What I personally favour, is creating a Custom Transaction and use the CTX button on the menu bar. Go to Set Up > Custom Transaction Types > New > Create a meaningful 3 letter code (I use PPP for Proprietor Person Payments), and give it a title "Proprietor Payments" (for example), and set Category to Payments.
Go to the Primary Ledger Tab select Capital Account in the ledger column, and select capital introduced in the account box click OK. Now select your new payment type and using the up arrow button, move it to the top (This makes it the default when you click the main CTX button).
To record a payment from his credit card simply click on the CTX button, and a familiar payment box will appear, the main difference is that this box will auto assign a reference that starts with the letter code you chose (making it simple to track/ report these types of payment). It also automaticcaly adds this amount to the Capital introduced account.
Hi Bill, Many thanks for that. I'll have a go at doing this. I had considered the first option, but as you say, it doesnt track the transactions, so wasnt what I really wanted. Think I need to spend a lot more time playing around with what VT can do. Thanks for your help.
