Bills paid personally

[SummerNLP]

Hi Everyone,

I am fairly new to the MYOB system and need further clarification on completing my first few entries.

Business start up purchases were paid via Directors credit card.

I have entered an account under liabilites, credit card, called directors loan.

I created bills for the start up costs (Domain set up, email, ASIC fee etc) that were paid for by directors c/c and recorded payments against them in MYOB using the Directors loan liability acc.

A few days later my bank feeds were set up and i deposited money into the business bank acc under owners funds introduced.

Now that i have money in the business acc I then did a transfer money transaction (for each total of bills paid against dirctor loan) from the business acc to the liability account, Director loan.

Firstly is this the correct way of entering?

Secondly, i now have unallocated transactions, being the total of funds withdrawn from the business acc, to directors c/c.

where do i allocate these transactions to?

my bank feed balance and calculated balance are the same, however never reconciled. 

I feel as though i have missed something.

Your help is much appreciated.

[Tracey_H · Accepted solution]

Hi @SummerNLP 

Thanks for your post. As we're not accountants we're not permitted to advise which accounts you would need to create and allocate transactions to, I'd recommend checking this with your accountant.

However, I can give some general advice on entering transactions into the software. The rule of thumb is that what happens in real life is recorded in the software, from what you've described it sounds like this is what you're doing so that's a great start.

When expenses are paid for with personal funds you would record either a Bill or Spend money transaction and select the director loan type account as the pay from Account. 

To record personal funds paid into the business bank account you would record a Receive money transaction with the pay to Account as the business bank account. You'd need to check the allocation account with your accountant.

When you repay the director for the expenses paid for with personal funds you would record a Transfer money transaction with the From account as the business bank account and the To account as the director loan type account. Or, now that you have bank feeds, in the Bank transaction window allocate the withdrawal to the director loan account. 

In the Bank transactions window you can match or allocate bank feed transactions. If you have manually recorded the MYOB transaction, you need to match the bank feed to the MYOB transaction. If you haven't manually entered the MYOB transaction, allocate the bank feed to the applicable account. When you allocate a bank feed the MYOB transaction is automatically recorded.

As you manually recorded the Transfer money to repay the director, match this transaction with the bank feed by clicking on the expand arrow>>Match transaction and selecting the transaction.

If you have trouble matching the bank feed with the Transfer money transaction can you send me screenshots of the Transfer money transaction and the Bank transactions window. Make sure sensitive information is removed from screenshots prior to posting on the public Forum.

Please let me know how you go.

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

[SummerNLP]

Hi Tracey,

Thank you so much for responding to my post.

I can see where i went wrong after you pointed it out with the bank feed.

Because i manually downloaded the bank statement originally, it was picking up 2 x expenses so i was out of balance the exact expense amount, so i assumed i entered it incorrectly.

I deleted the imported bank statement and deleted Bills + transactions and started over. 

Now balancing. 

Thanks again!