Struggling with vendor payments
maf at chilwell.net
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:
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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