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Business Mileage not showing on P&L

I have followed this way of doing my mileage.
I have created the supplier account.
Next I paid it from the Proprietor Drawings account as cash (was this correct?).
I don’t see the amount showing on my profit and loss as any sort of expenses
I don’t understand the next part how to reimburse.
Any help gratefully appreciated

For Sole Traders, the mileage expense invoice would normally be paid from the Proprietor Drawings Account. Unlike limited companies, sole trader activity is all under the one legal entity (which is you), the Proprietor Drawings account offers a way to separate those items that are personal from the business transactions. When the mileage expense invoice is paid from this account it serves as a way to show that those funds are owed to the sole trader from the business. When you are ready to reimburse just tag the outgoing from the business account as a transfer to the Proprietor Drawings Account thus netting off the original payment.

No that isn’t how it’s done.

No one needs to worry about posting mileage allowance in advance before it’s paid that’s just silly. Just post it on the date you make the claim.

All you need to do is create a chart of accounts code for mileage or use some motor expense nominal.

Create a journal and use proprietors drawings account and either the new nominal or the motor nominal. Use the description to record the mileage and add the amount to cr and Dr sides.

Make sure you cr and Dr the correct nominals otherwise you will increase the p and l profit instead of decrease it.

You can’t have a supplier as there isn’t one. It’s an allowance not an expense. So no supplier no invoice. Your basically creating a bogus supplier doing it that way.

I’m not sure where you got that info from but if it’s from quickfile help files I’d query it as it seems a long winded and very unneeded way to do this for mileage.

Hi, yes I did get it form the Quickfile help files HERE

I really don’t know how to use the journal or even understand what it is :frowning:

Maybe you should seek an accountant.

To get your mileage costs to show in the P&L you need to create either a purchase invoice (which you can do from the bank payment) or a manual journal.

You can use a supplier account for your expenses if you find that easiest, but a journal is more appropriate. A journal is a way of entering transactions to the general ledger (P&L or balance sheet) without having to create invoices.

You would create a new journal, with a debit to travel expenses for the amount of the mileage claim. The journal needs to balance so you would credit proprietor’s drawings. This then creates a balance owed to you by the business.

You then tag the bank payment to drawings, and the two entries balance each other out, leaving the mileage cost in the P&L.

Once you get the hang of them, journals are more efficient for your expenses.

Please feel free to message me if you need any more help.

The supplier is the proprietor. It is not the most efficient way, but for a sole trader is acceptable if the op doesn’t feel comfortable creating journals.

If there’s any balance on the supplier account at the end of the year, the accountant would just move it to drawings.

I wouldn’t use this method for a limited company though.

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