Entering sales and purchase in same general journal

I want to record a sale as X amount, the deposited into the bank account as A, and the finance charges as B (since the finance company is depositing the difference between our gross sale and their charges. I was hoping to enter in one journal but since it's a mix of sales and purchase (bank charges) system not allowing. Best way?

Comments

Kris_Williams

Record the sale and bank it to a clearing bank account, then record the charges as a payment from the clearing account, and then transfer the net figure to the correct bank account

Loretta Wisdom-Zagon

Thanks Kris so you are suggesting 2 journals?

Kris_Williams

Could be 2 journals, but could be a sales receipt and a cheque, the latter is probably better

Zappy

Why are you using GL entries?

Loretta Wisdom-Zagon

Is it not possible to combine these transactions as I'd hoped in one journal?

Zappy

No because you can't have purchase and sales tax codes in the same transaction. Its a limitation of the software. And thanks for your question

Acctd4

@Loretta Wisdom-Zagon No - A journal can't contain both income & expense tax codes or A/R & A/P, together due to the background system accounting automation.

The recommended way to enter is as per Kris's advice above via use of a Clearing bank account. This is just a dummy "holding" account which enables you to pay & receive funds (in & out) in this type of situation.

RA/RAH are designed for non-accounting people. The intended method for most entries is via the designated forms within the program, in order for the system to automatically create the applicable double-entry journals behind the scenes. You can view this journal entry in most form windows:

Zappy

Sharon that's exactly what I said.

Also, the GL should not be necessary

The change should be made through the subsidiary ledger

Loretta Wisdom-Zagon

Many thanks Kris and Shaz

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