When I create a payment entry, from account is set as cash and to account is creditors account. So for example if I pay Rs 5 . This Rs 5 goes to the creditors account.
What should I do to show this Rs 5 in expenses and nullify the creditors account ? Or should I leave the Rs 5 in creditors account itself?
Creditors is generally used in an expense/purchase invoice entry.
Generally, when you create an invoice, the expense amount is credited to this account.
On creating a payment entry, the equivalent amount is debited to the account thereby nullifying it.
Hi! Thank you! But in certain cases I don’t want to create an invoice. For example vehicle petrol expenses. My business has many petty expenses than major expenses which does not require invoices. My business also gets services from many people for which we can not create invoices.
In that case you can pass another entry to cancel out the amount pending in creditors?
Maybe you’d want to pass JVs directly instead of payment entries as the workflow there is well defined. Within JVs, to ease the working, you can create pre-defined templates for certain expenses.
Okay will look into that… Thank You.
Do you think creating invoices with paid option checked in will solve this issue?
Yes. Will work.
Is Paid is basically a POS entry, meaning you don’t have to create a separate payment entry.
Likewise, in the item table, you don’t need to select an item code. Just enter the reason for the expense in the item name field and choose the appropriate expense head.
Eg:
Thank you!