Value of entering purchases versus spend money
Many of the purchases made by our business are paid on company debit card so the transactions are picked up on the bank feed. My predecessor in the job always entered all transactions as purchases then offset the purchase against the payment. It seems to me that I could just as effectively process the transaction as a Spend Money against the supplier. Is there any significant reason I should continue the existing process or is allocating it as a Spend Money transaction just as legitimate?
Hi Cavman
AccountRight is designed to record purchases from suppliers through the purchases command centre. This updates both the accounts payable control account and the inventory list if you are purchasing items.
The spend money functionality is designed for those incidental expenditures, like the morning coffee. If you were to use the spend money function, this can prevent certain reports, designed to track transactions with suppliers from reporting accurately and can also cause out of balances between the accounts payable control account and the invoices in the file
