An invoice has been raise and put against Profit & Loss Account Code 7002.
I would like to correct this to a Balance Sheet code “Drawings” 3100
How can I correct this without a correcting Journal
IT is a RE-Code Posting.
But Account 3100 does not appear on the list of codes
IT is a RE-Code Posting.
But Account 3100 does not appear on the list of codes
Anyway code 3100 can be added to the Re-Code Posting List
Hi @ASHETH
I just want to clarify your situation. Are you trying to raise an invoice against code 3100?
The Invoice had already been raised and analysed to profit and Loss Nominal Accounts Code to 7002.
This was Sole Trader’s Drawings and should have been allocated to Balance Sheet code 3100.
For drawings for a Sole Trader, they should be recorded using a different method other than an invoice. There’s a short guide in this post, and a couple elsewhere on the forum too.
Basically, you would use the Sole Proprietors bank account to track what money is taken from the business as drawings, and what money is put in as capital.
I hope this helps
I am in complete agreement with you.
Unfortunately, some other person did this and I am trying to correct it
Assuming this is a purchase invoice (seems the drawings are going out of the business), I would delete the invoice and then follow the steps in the post I linked to above to correct it (tag the bank transaction in the current account directly to the Proprietors Drawings Account).
This would log it against BS code 1202, which will help keep track of the drawings and capital until year end. At that point, it can be journalled. If you’re unsure about this part, there is a guide somewhere on the forums (I will try to find it and update my post), but your accountant should be able to help with this part.