A cash purchase occurs when a business pays for goods or services immediately upon ordering or delivery. No credit is extended by the supplier. No account payable is created. The resulting expense is posted immediately to an expense account, regardless of whether the business uses accrual or cash basis accounting. Therefore, no purchase invoice is required. The entire transaction occurs in a single step.
Before a cash purchase can be entered into Manager, at least one cash account or bank account must be created. Then, within the Bank Transactions or Cash Transactions tab, click New Bank Transaction or New Cash Transaction and select Spend money:
Complete the cash payment form. By default, today’s
Date and cleared transaction
Status are selected. These entries may be edited. Choose a
Bank account or
Cash account (depending on the transaction type). Enter the supplier’s name in the
Payee field. Line items can be entered either semi-automatically, by selecting inventory or non-inventory items, or manually. Applicable tax codes can be selected:
Click Create to complete the transaction. Any necessary adjustments will be posted to inventory accounts. If the payment is from a cash account, a
Reference number will automatically be applied. Manager will find the highest existing number and add 1.
To view the payment, go to either the Bank Transactions or Cash Transactions tab, depending on which type of account was used to pay for the purchase. Locate the transaction and click View :
The payment form can be filed as documentation of payment: