Topic: Purchase Items With Cash
Hi,
I have some items which purchased with cash. I want to know what is the correct way to input the item purchasing with cash?
Thanks in advance.
Re: Purchase Items With Cash
Hello,
Use your petty cash account. This should be established as a bank account. Then you can use this at both selling and purchasing.
Even if it is called a bank account, it is your own cash register account.
Joe
3 11/15/2015 06:40:13 am (edited by bogeyman2007 11/15/2015 06:43:41 am)
Re: Purchase Items With Cash
joe wrote:
Hello,
Use your petty cash account. This should be established as a bank account. Then you can use this at both selling and purchasing.
Even if it is called a bank account, it is your own cash register account.Joe
Hi Joe,
Thanks for your reply. So I guess I need to add one supplier (for the example I give its name "Cash"). And then in manage supplier page, I use Petty Cash Account for the "Accounts Payable Account". Is it correct?
EDIT:
Or I just need to enter direct invoice and then enter the payment and choose Petty Cash Account in "From Bank Account" option?
- apmuthu
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Re: Purchase Items With Cash
Cash Supplier Account is the Payment Account should be Petty Cash. Whilst the expense account / asset account is the contra one as the case may be (if written off or capitalised respectively).
Re: Purchase Items With Cash
I'm having a frustrating time with this, using version 2.3.25
I add a supplier and set the AP account for the suppler to Petty Cash
Using Direct Invoice I add the detail, hit process. Correctly in the GL I get CR Petty cash and DR the appropriate expense account(s) much as I would expect...
BUT these direct invoices all remain unpaid until I then manually create payment from petty cash - which result in both a dr and cr in petty cash for the same amount, i.e creating a redundant transaction in the GL
So am I missing something or is this a bug ?
Re: Purchase Items With Cash
Continues to drive me nuts, so many extra unnecessary steps....
the problem is that with each step there is potential to make mistake...
e.g. even though the supplier is 'cash only' payments default to current account....
so I keep accidently entering payment as from current account, and because they are immediately posted to GL, no chance to amend
same with dates...
so I end up making mods directly to the mysql tables... which is not good practice....
are there better ways to quickly enter a load of cash transactions with suppliers ?
- apmuthu
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Re: Purchase Items With Cash
Direct Invoice should create a Sales Order and on Delivery, the Invoicing occurs. Hence payment is a separate entry for such tracking.