Entering sales and purchase in same general journal

Loretta Wisdom-Zagon

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?

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

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Loretta Wisdom-Zagon

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

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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:

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Loretta Wisdom-Zagon

Many thanks Kris and Shaz