I am brand new to all this… I have some expenses out of pocket and want to claim it back against the DL.
EG. POstage, mileage, hotel stay , train tickets and refreshments during travel. Do I record these by creating new suppliers or just by doing journal entries to the relevant accounts?
Hi @Hettie
If I’ve read your post correctly, I believe your query relates to a director paying suppliers on behalf of the company?
If this is the case, you would log these as regular purchase invoices and log them as paid from the DLA (Director’s Loan Account). This would in turn decrease the balance of this account.
So, let’s say as a director, I paid £100 out to a supplier for various items. When the supplier invoices the company for the £100, you would log this as a regular purchase invoice and pay it in full from the DLA, showing the director has paid for it. This then puts the DLA balance as -£100, and as such, the company then owes the money back to the director.
When the company pays them back, you can tag the money out transaction as a transfer from your current account, petty cash - however you pay it, to the DLA to balance it.
I hope this helps
HI Thank you. It is more for small expenses, like train tickets and postage and refreshments on the go.
Regarding the creation of new suppliers. It’s common practice to create some generic (catch all) suppliers, e.g.
- Generic Fuel (For business related fuel)
- Generic UK Travel
- Generic Overseas Travel
- Generic Postage
etc…
This is more effective and creates less clutter than creating a supplier record for every single expense, especially when you know you will never use that given supplier again.
You can also drop the actual supplier name into the description field on the invoice if you like and attach the receipt.
Thank you so much , sounds much more
user friendly.
And mileage ?
We have a general guide on mileage here, this may be helpful but let us know if you have any doubts.
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