This page contains instructions how to make the accounting entries of purchases paid in cash or by card. These include purchases paid using the company's cash assets or card, or the person's cash or card.
The purchase is paid using the company’s cash assets (cash purchase)
Entering as a journal receipt
Cash purchases can be entered most conveniently as journal receipts, even if they can also be entered as purchase invoices. However, it is not advisable to enter a separate journal receipt for every purchase, but instead collect purchases over an appropriate time period (for example a week or a month) and enter them as a consolidated journal receipt.
In the journal receipt, you enter the consolidated purchase information by VAT rate. If needed, you can create a detailed specification of purchases in an Excel sheet, which you can add as an attachment to the journal receipt.
When the journal receipt is ready for approval to the official accounting, click the Approve button to set the journal receipt to status Approved. It is possible to edit the postings of the approved journal receipt.
Entering as a purchase invoice
If you want to enter purchases as purchase invoices instead of journal receipts, the principle is generally the same. When using purchase invoices to enter cash purchases, the supplier’s default account 2880 Payment transfer account is replaced with 1900 Money / cash assets. Now, the automatic posting becomes per 8450 Other administration expenses an 1900 Money / Cash assets. In this way the invoice postings do not have to be changed in the accounting view, because the cash account is used automatically. Unlike the journal receipt, however, the purchase invoice has to be marked paid using the Marked paid elsewhere function to remove it from the open invoices list.
The reason to enter cash purchases as purchase invoices could be that you do not want to go or are not authorised to the accounting view. Reporting needs define whether it is more convenient to use journal receipts or purchase invoices. In you are using Procountor’s Inventory Management feature and purchase stocked products in cash, it is advisable to make the accounting entries as purchase invoices, because stock transactions cannot be generated from journal receipts.
Make a purchase using the company’s bank card
We recommend creating a dedicated account for bank card purchases (for example 2881 Bank card purchases). Bank card purchases are marked on the bank statement with the their own entry explanation, no. 721. Go to Management / Accounting info / Posting defaults / Default postings for reference payments, and define posting 2881 Bank card purchases (default: 2880 Payment transfer account) for that entry explanation. Now the payments for bank card purchases are automatically posted to their dedicated account, which makes it easier to monitor them.
The actual purchases made using a bank card are entered using a journal receipt as in section “The purchase is paid using the company’s cash assets (cash purchase)”, with the exception that account 2881 Bank card purchases is used instead of account 1900 Money / cash assets.
Make a purchase using the person’s money, bank card or credit card
The person creates an expense invoice of his/her purchases.