Forum Discussion

leihu's avatar
leihu
Experienced User
4 years ago
Solved

Spend Money invoice date and payment date are different

Dear Experts,   When I record an expense through Spend Money, the invoice date and pay date are different. This is because I'm using Direct Debit card, which always has 2-3 days delay. This means t...
  • Tracey_H's avatar
    Tracey_H
    4 years ago

    Hi leihu 

     

    When manually reconciling it's ok to tick a transaction if the date is different to the date on the bank statement as long as it was withdrawn from your account in the period you are reconciling.

     

    For example, you record a Spend Money transaction on the 30 March and it's withdrawn from your bank account on the 31st March. When you reconcile March tick the Spend Money transaction because it is on your March bank statement. However, if it wasn't withdrawn from your account until the 1st April you wouldn't tick it until you did the April reconcilation.

     

    It's normal to leave some transactions unticked or to have different dates. Back in the days when I first started bookkeeping this was common because we wrote cheques to pay bills and sometimes it would be a couple of weeks before that cheque was presented.

     

    When it comes to which date is best that will depend on whether your accounting basis is Cash or Accrual and your financial reporting. Personally I always went by invoice date because that gives you an accurate idea of your cash flow. However, I do recommend that if you're not sure how to record transactions to check with your accountant to ensure you're reporting correctly for your business.

     

    If you are interested in using bank feeds please let me and I'll be happy to guide you through it. I loved it when I started using it.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

     

leihu's avatar
leihu
Experienced User

Hi Tracey,

 

Thank you very much for your answer. But I don't use bank feeds, and honestly I don't know how to use it. I only do bank reconciliation manually. Some people tell me to use pay date, but in your post it looks like you use receipt date. Does this mean either way is OK?

 

Lei

Tracey_H's avatar
Tracey_H
Former Staff
4 years ago

Hi leihu 

 

When manually reconciling it's ok to tick a transaction if the date is different to the date on the bank statement as long as it was withdrawn from your account in the period you are reconciling.

 

For example, you record a Spend Money transaction on the 30 March and it's withdrawn from your bank account on the 31st March. When you reconcile March tick the Spend Money transaction because it is on your March bank statement. However, if it wasn't withdrawn from your account until the 1st April you wouldn't tick it until you did the April reconcilation.

 

It's normal to leave some transactions unticked or to have different dates. Back in the days when I first started bookkeeping this was common because we wrote cheques to pay bills and sometimes it would be a couple of weeks before that cheque was presented.

 

When it comes to which date is best that will depend on whether your accounting basis is Cash or Accrual and your financial reporting. Personally I always went by invoice date because that gives you an accurate idea of your cash flow. However, I do recommend that if you're not sure how to record transactions to check with your accountant to ensure you're reporting correctly for your business.

 

If you are interested in using bank feeds please let me and I'll be happy to guide you through it. I loved it when I started using it.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

 

  • leihu's avatar
    leihu
    Experienced User
    4 years ago

    Hi Tracey,

     

    Thanks again!! And sorry for the delay. Now I know which way is better. Thank you!

     

    As for the bank feeds, because I'm very new to MYOB, I'd like to do things manually as much as possible so that I can learn more how MYOB works. I'm sure I'll use it sooner or later. I'll ask you when I decide to use it.

     

    Thanks once again!!

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