[GNC] Should one use Accounts Payable if a vendor is paid immediately ?

[Stan Brown]

What David says is true.

However, if you create two transactions:
      Debit to Expense:something
      Credit to AP:this vendor
and
      Debit to AP:this vendor
      Credit to Assets:Cash or bank account
then the vendor's account will show the whole history of your purchases
from that vendor.

I think either way is valid from a strictly accounting standpoint. The
choice comes down to what reporting you think you might want later.

Stan Brown
Tehachapi, CA, USA
https://BrownMath.com

On 2022-11-27 12:43, David Cousens wrote:
> If you receive payment immediately all you need is to create a transaction
> debiting your relevant bank account and crediting the appropriate income
> account. If there is some external record you can use the ability to associate
> an image file of it with the transaction.  Similarly if you pay a vendor
> immediately you can simply create a transaction crediting your bank account and
> debiting the appropriate expense account and associate an image of the receipt
> with the transaction.