I am using journal entry to enter the payments made to several people. But since invoices is not created , the amount paid is still showing in payable. Please help me to stop it from showing in payable.
use payment reconciliation
Thing is most of these are petty transactions . So I can’t invoice everything…
What is the exact payment entry you have made?
Cr → Creditors Dr->Bank/Cash?
petty transactions is expense against bank, right?
if you want to expand further it will be bank against vendor, and vendor against expense, this kind of transaction need to reconcile using payment reconciliation
Petty transactions are cash transactions. I have booked it via journal entry, directly into various indirect expenses account.
For example:- If someone buys fuel it is entered via journal entry directly into fuel account created under indirect expenses account.
With this, there are no payable transaction right? Direct cash/bank to expense
I will repeat the question above, what is the exact payment entry you have made?
I converted some indirect expense accounts Into payable account…
By changing the account type I converted it into Payable account so that I will be able to add to whom this the transaction is booked to.
I cannot follow you, mate
Petty transaction is consist only
How do you convert it to payable, and why?
Ah… I will try to give you clear explanation .
My business makes lot of petty transactions rather than few large ones. There for I book these expenses directly via journal entry.
But for indirect expenses accounts we cannot provide details of the supplier. There for just by changing the account type of indirect expenses as payable, I am able to add details of suppliers while booking in. Journal entry.
Hope you got my situation…
Then what have you done is using payable account with TITLE some expense. This is a a simple payable by bank/cash transaction (advance).
So for this account situation, is there any way to stop showing payables without generating invoice?
don’t use payable account disguised as expense (account titled as expense but with payable type)
just use expense account with expense type
if you still want to track to whom you pay your expense, use journal entry bank with payable and payable with expense, then use payment reconciliation. Or to be more simple, you can use purchase invoice and check the is Paid checkbox. Choose which is easier for you.
The problem with this way is that the amount will be booked in creditor’s account…
I don’t know which kind of accounting standard you follow mate, good luck with your enterprise
Hey! It’s easy. Don’t use payable account as expense account. Please follow these steps:
You make payable account and expense accounts for same things example,
Petty Expenses Account
Petty Payable Account
Credit Cash / Bank