AE Basic question on expenses
Jim Bessette
via web
I tried this question once but it never got to the list here and
the AE team spoke to me over the phone, but I'm still not getting
it. I have AE Basic, and it's the only accounting software I've
ever tried. I have a tiny business with a friend. We make personal
purchases (using our personal money) for the company. I want to
keep track of those expenditures so that the company can reimburse
us for those purchases. This is a photography business, so for
example, I pick up prints for a customer from the lab and it costs
me $25.00. Til now, we've been keeping track of this on a
spreadsheet, and eventually pull the money out of our business bank
account. I can't figure out a way to do this with AE Basic. I can
set up a liability account, but I can't determine how to show that
the business owes me (personally) that $25. I try to enter a
journal entry and it just says I can't have an unbalanced
transaction. This may be really simple, but I'm quite the simpleton
at this for now.
THANKS!
Jim
2 Posted by Dan R on 27 Jan, 2012 08:33 PM
A way to do this in AE Basic & even in AE Pro (with a purchases section) is to create a liability account for "Reimbursable Purchases" (whatever name you want and maybe even 2 - one for you and one for your partner). Set the account type to be a "Credit Card" as you are the 'credit card" your company is using.
When you personally make a purchase for the company - enter that purchase as a "spend money" only change the bank account from your checking account to the "Reimbursable Purchases" account you created (You can do this when the account type is Bank or Credit Card) . On this spend money transaction you could use a vendor card for the "lab", leave the card area blank, or use a general "paid out" card you create - whatever makes sense to you. Using the specific "lab" would give you the ability to get reports showing how much you spent at that specific vendor etc.
Use the Expense account or cost of goods sold (if AE basic has that) or whatever account the purchase belongs in and record.
Unbalanced transaction warning can be that the amount in the check area above has not all been alloted to an expense account below or vice versa.
As you continue you will be building an amount in the "Reimbursable Purchases" credit card account that is the total owed to you. To pay yourself just use a Spend Money check using your checking account and post it to the "Reimbursable Purchases" account for the total. You get your reimbursement and the "Reimbursable Purchases" account should zero.
:-)
Dan
3 Posted by Jim Bessette on 27 Jan, 2012 08:44 PM
Thanks Dan! I'll give that a try and see if I "get it".
Jim Bessette
***@gmail.com
4 Posted by Jim Bessette on 27 Jan, 2012 09:02 PM
Hey Dan, I think I've got it working that way. At first I screwed up, but reading your email more carefully got me there. THANKS SO MUCH!
Jim Bessette
***@gmail.com
5 Posted by Elenor on 19 Apr, 2012 03:00 AM
Thanks from me too, Dan. I've been using my personal card for business expenses, and tracking them on a "Petty Cash" listing; paying the card off for that amount periodically from the company bank account. This looks like a really good way to bring this info into AE!