I am trying to tag all expenses related to a project so I track overall spending etc, however when I tag ATM withdrawals under “Something else not on this list” I can’t seem to add project tags to these - is there a way I can do this?
Presumably, it’s the best way to tag an ATM withdrawal from our own account, as the other way would require us to select ‘payment to supplier’ - this doesn’t feel right as we aren’t paying a supplier. Any advice appreciated.
I’m afraid project tags can only be added to sales invoices, purchase invoices, estimates and purchase orders.
Generally the way to handle an ATM withdrawal would be to tag the transaction leaving your current account as a transfer to petty cash, and then pay the supplier from petty cash. This would as a result create a purchase invoice for the supplier, which can have a project tag.
Hope that helps!
Ah ok, thanks. Can you explain a bit further how I would do that?
When I tried the transfer, it moved it to petty cash and tagged automatically - It wouldn’t let me tag those either.
Basically we had some volunteers work on an event, and we gave them each some money to cover their expenses - no invoices, they aren’t a company or a service.
Is there an easy way to reconcile these cash amounts that we withdraw and pay them cash in hand, and then tag those using project tags?
Many thanks for your help with this.
Sure. So when you withdraw, let’s say £10 from an ATM, you would record the withdrawal from the current account, and click Tag Me! and select Transfer to another bank account, and pick Petty Cash. This will automatically create a pre-tagged transaction for the money coming into the Petty Cash account.
When you spend the money, you would create a money out transaction for that value - we’ll use £7.00 as an example. Carry on as you would with any supplier invoice, create it, mark it as paid or tag the £7.00 payment out to the invoice.
This leaves £3.00 in Petty Cash, which should represent the change you received.
You may wish to check with your accountant on this (I’m not one), but I would imagine you would still record the expenses of this as a supplier payment, more so if they were making the purchase on behalf of the organisation.
As long as they’re tagged to an invoice or another item I listed above, then the document (rather than the payment) can have a project tag.
You have got a bit bogged down on the bank tagging side.
To put those payments through your books you still need purchase invoices. The way we do this is to create a supplier account for each volunteer. We account for actual expenditure so an advance payment is logged as a payment in advance. When receipts are presented we create a purchase invoice and use the prepayment to settle it.
If you are giving a flat rate allowance then skip the pre-payment step, create a purchase invoice and flag it as paid from petty cash at once.
The invoices are the things that are tagged not the payments.
This topic was automatically closed after 7 days. New replies are no longer allowed.