I have clients who pay me in cash for taxi fares and then I invoice them with the invoice marked as Paid so they can claim it as expenses. The money is then banked so that when it needs to be tagged the invoice is not shown as outstanding. How do I tag these payments in if the invoice is not unpaid?
When you are originally marking the invoice as paid what account are you logging the payment to? It should be logged to petty cash. Then when you bank the cash, you should tag the bank transactions as a transfer from petty cash.
I just allocated a payment to it at the bottom of the invoice. I cant see on the paid account where it was logged to but I know I didn’t use petty cash. How can I rectify this?
Oh Ive just seen that it says paid by cash to Barclays current account. Can this be changed?
Find the transactions on the bank and delete them, this will revert any affected invoice to UNPAID. You can then link the untagged transactions on the bank to the invoices.
thank you I have done that now. I shall use the petty cash way of paying it in future as we get this occasionally. Great service as usual.
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