Debtor invoice to be paid by company expense account

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Graham Taylor Automotives
Graham Taylor Automotives Member Posts: 41 ✭
edited July 2020 in Reckon Accounts (Desktop)
Hello, 

I am running Reckon Accounts Premier Ed 2015.

We are a mechanical shop so we do our own vehicle maintenance.

I need to 'bill out' the work done on a company vehicle. This process needs to also adjust stock quantities. My original thought is that I would just bill this as I would a customer, however if I do this I am unsure how I 'pay' the invoice and allocate it to the expense account for that vehicle. 

I could enter an expense item to the vehicle but this won't generate any way of tracking the work that was done on the vehicle in the same way I can track a customers, this would also mean that I would either have to ignore that there is stock and enter an amount and description as an expenses invoice which is not ideal or I would have enter each invoice correctly and then go through and update stock quantities for every single part. Any one who has had to update stock on hand knows that this is a time consuming and not always easy task. 

Does anyone have any ideas of what I can do?

Thank you
J

Comments

  • Ifti
    Ifti Reckon Staff Posts: 258 Reckon Staff
    edited July 2020
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    Hi there,

    Thank you for your post.

    Does Recipient Created Tax Invoice sound similar to your situation?

    Please give this doc a read and see if that helps you. 

    Link: http://library.reckon.com.au/library/pdf/qbi_RCTI.pdf


    Please let us know how you go.



    Cheers,

    Ifti
  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited December 2016
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    Hello J.  I have a fairly simple simple solution for many situations like this where an alternative approach is needed.  In my case, I have created another Bank Account called "Internal Transfers" which is similar to a Suspense Account but operates like a bank account.  Here are the steps that I would use in your case:
    1.  Create the Internal Transfers Bank Account
    2.  Create the invoice as you normally would do - in this case the Customer will be you.
    3.  Write our a cheque on the Internal Transfers bank account to pay the invoice.
    4.  Then "receive payment" for the "cheque" that you have created/received.  Instead of this payment being deposited to Undeposited Funds, deposit it instead to the "Internal Transfers" bank account.
    When you look at the transactions in your Internal Transfers account, you should find that the balance is zero with both a debit and credit entry for the same amount.  By doing this, you will achieve the outcome that you are looking for in relation to your stock.
    John L G
  • Graham Taylor Automotives
    Graham Taylor Automotives Member Posts: 41 ✭
    edited September 2016
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    Hi John, 

    Thank you for your reply. This is certainly an interesting solution.

    Could you please give me some guidance on point 3 - Write out a cheque on the internal transfers account to pay the invoice? I am not really sure how you do this. I don't 'write cheques' all payments to creditors are done by the 'Pay Bills' function. would this mean I would need to set the company up with a creditor and debtor profile?

    I am also wondering if this will have any taxation consequences. 

    Thank you 
    J

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