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August 2022
August 2022
Hi, I've just signed up for myob so learning a fair bit.
I've purchased some adhesive from Bunnings and I'm recording the expense. I classify my adhesive as 'Consumables'. I paid for this from my 'Business Bank Account'
So, I click 'Create bill' and I input the Supplier (Bunnings), Description (Adhesive), Amount ($300), etc.
There is a column/field for 'Account'. Do I enter 'Business Bank Account' as this is where the payment came from? Or do I enter 'Consumables' as this is the type of transaction/purchase I've made?
My thinking...
Thanks very much,
Pete
August 2022
August 2022
Hi Pete
Thanks for your post and welcome to the Community Forum. Before we get to creating a bill, we'll go back a step to setting up the linked accounts. If you click on Accounting>>Manage linked accounts you can select the default bank account for bill payments. You would also select the liability account for tracking payables.
Create bills is just recording the invoice, the payment is recorded through Create supplier payment. So when you enter a Create bills transaction you select the applicable expense/cost of sales account in the Account column. When the transaction is recorded the expense/cost of sales account is debited and the liability account for tracking payables is automatically credited.
When you record the Create supplier payment transaction the liability account for tracking payables is debited, so the liability is cleared. The bank account field will prefill with the account selected in the Manage linked accounts window or you can change it to another account if required. The bank account will be credited which appears as a withdrawal in Bank transactions/Reconcile accounts.
What you end up with is a debit to the expense/cost of sales account and a credit (withdrawal) to the bank account.
Create bills is typically used for supplier purchases. For one-off expenses or things like utility bills, your other option is to record Banking>>Spend money transactions. You'll end up with the same journal (debit expense account, credit bank account) but you'll only have to record one transaction.
Please let me know if you need further help.
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
Cheers,
Tracey
Previously @bungy15
MYOB Community Support
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