just a simple question, when we buy something on credit, we raise the invoice than it goes to Creditors Control Account and when we pay it we use the Supplier Payment button.
BUT.....
I don't buy something on credit and I pay immidiantly or just few days after, how can I do a cash payment to mark the invoice as paid?
Is it petty cash where you have been paid (so you recorded the receipt of money to petty cash) but not banked the money yet? (not yet transferred from petty cash to current account)
Is it owner capital introduced? (i.e. something you paid for yourself so effectively loaning money to the business)
If the former.
Dr Expense
Cr Petty Cash
if the latter
Dr Expense
Cr Capital
HTH,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
If I have an invoice that is going to be paid straight away or in the next few days I generally put it through as a bank payment from either the main bank account or petty cash etc. Some of them I post the invoice then immediately mark it as paid from whichever bank account using supplier payment. The difference is if the supplier is a one off which is usually the case with things I may get off ebay then just do a bank payment. We also buy from auctions quite regularly, these want paying on collection either BACS, debit card or cash, they aren't too fussed, and I tend to post these to the supplier account then pay them as a supplier payment on the same day.
-- Edited by Rhianrach on Monday 26th of October 2015 12:37:51 PM
