Struggling with vendor payments

Maf. King maf at
Thu Aug 4 05:06:17 EDT 2005

On Thursday 04 Aug 2005 06:25, Beth Leonard wrote:
> On Wed, Aug 03, 2005 at 10:40:41PM +1000, Andrew Greig wrote:
> > Hi Maf, et al
> > I have unposted and deleted all of the expenses which should have been
> > entered through petty cash as you suggested.  But now I can find no
> > reference in the help file regarding use of petty cash.  Could you
> > explain your process to me please? IANAA either.
> Example 2: You pay it from your own personal wallet, and reimburse
>   yourself once a month.  (no taxes involved).
> Example 3: You pay for it from your business Petty Cash, and
>   need to track how much was for "Parking" and how much was
>   the associated taxes -- say 8% tax rate.  (I'll call it GST
>   in this example, but being from the US, I don't actually
>   know what that means.)


I use a combination of Beth's examples 2 & 3.  I pay from my personal wallet, 
(I treat my wallet as a business liability), but also keep track of the VAT 
(17.5%) component, which IIUC is broadly similar to Aussie GST.

So my version looks something like:
Liability:MyExpenses                  10.00
Expenses:Parking	10.00/1.175                (GC records 8.51)
   VAT:Input Tax	1.49                            

And then at the end of every month, I zero the balance of Liability:MyExpenses 
with a transfer from the business bank account.

If you actually spend business petty cash directly (or use a business credit 
card, for example), then Beth's example 3 seems right to me.


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