I have invoiced a customer for £220. I owe them £240 personally (not from the company) so they are not paying this invoice.
Do I just do a “Log a Payment” and pay it to the “Proprietor Drawings Account” with “Bank Transfer” as the method, or is there some thing else I should be doing?
Hi @Hactar
This should be fine, although you would then end up with an outstanding amount sat in the Proprietors Drawings Account at year end. Do you plan to ever put that money into the business? If not, you could potentially get around this by recording some drawings.
I sort of do this all the time (although it is usually with purchases paid for from my pocket) but the process is pretty much the same. As long as you have more than £220 in you proprietor drawings account it will work out fine, if not you will need to ensure you transfer some money to the proprietor drawings account first (or leave it until year end to tally it all up as required).