Cash Advance

Matty679

Hi All

 

So I need some clarifications on the following:

 

We are an NGO and travel to communities to conduct training/workshops etc..

 

To cater for expenses we write cash cheque to the estimated expense value, for instance $1000, which is cashed at the bank and on hand to make payments.

 

In MYOB, spend money is used and coded to Cash Advance thus:

 

Dr Cash Advance (Asset)  $1000

Cr Bank(Asset)                               $1000

 

When the staff gets back to the office and provides the acquittals & invoices which amount to $900:

 

In MYOB this is recorded through a Journal Entry:

 

Dr. Expense Account     $900

Cr. Cash Advance (Asset)             $900

 

Balance of $100 is deposited back into the bank account:

 

Dr. Bank (Asset)           $100

Cr. Cash Advance(Asset)               $100

 

Is this the correct way it should be done especially with supplier invoices? Or is there any other way?

 

Appreciate your response.

 

Thanks

Julie_A_C

Hi @Matty679 

 

It all sounds good, but if you want to enter the actual supplier invoices into Myob, either in purchases or by spend money so you can create a card for them and have more tracking options later then when they are paid it would be via the Cash advance account, which needs to be set as account type bank.

 

You should also reconcile the cash advance account as you do with the actual bank account.  Using nil balance and ticking all advances that have been acquitted.