Money spent in any way by a business is a payment. Before one can be recorded, at least one bank account or cash account must be established. The corresponding Bank Transactions or Cash Transactions tab must also be enabled.
Once at least one bank or cash account exists, payments are recorded in the Bank Transactions or Cash Transactions tabs by clicking on New Bank Transaction or New Cash Transaction and selecting Spend money:
Complete the entry:
Dateis automatically filled with today’s date, but can be edited.
Referenceis optional for bank transactions, because the institution normally assigns any reference number. For cash transactions, Manager will automatically generate a
Referencenumber when the payment is created. It will find the highest existing
Referenceand add 1.
Cash account(depending on whether the payment is a bank or cash payment).
Statusis set to Cleared by default. Another Guide covers cleared and pending transactions in greater detail.
Payeeis the person or entity to whom money is being paid.
Descriptionis an optional summary of the transaction.
Itemfield can be used to enter predefined inventory or non-inventory items. If you have no predefined items, this field will not appear. Making a selection here will prefill several other fields on the line.
Accountis the account to which the payment will be posted.
Remaining fields are self-explanatory or are explained in other Guides. The completed form can be given to the Payee as a remittance or payment advice:
Payments to suppliers against purchase invoices can be entered two ways:
As a basic payment
To enter a payment against a specific purchase invoice, post it to Accounts payable, the Supplier, and the Invoice:
When paying only part of the balance due on a purchase invoice, allocate the transaction exactly as above, but enter only the amount actually paid. Manager will apply the partial amount against the purchase invoice and show a reduced balance due. No other special steps are necessary.
Payments for multiple purchase invoices
When paying a supplier for multiple purchase invoices, leave the
Invoice dropdown box blank. Manager will allocate the payment against the purchase invoice with a balance due that has the oldest due date first, then the next oldest, etc. However, if the payment is designated for specific purchase invoices, add lines and designate amounts for those invoices individually.
From a purchase invoice
To record a payment while viewing a purchase invoice, click on Spend money and select the transaction type:
A payment entry form will appear. Select a bank or cash account. The remainder of the form will be prefilled with information to enter the full amount due on the purchase invoice. If the payment is for only part of the balance due, edit the amount paid by adjusting quantity or unit price.
You are not restricted to using only simple expense accounts to post payments. For example, if money is paid to a business owner set up under the Capital Accounts tab, select the matching capital account and subaccount:
If a fixed asset is purchased the transaction can be allocated as below:
Employees are paid by allocating payroll amounts as follows:
Inventory and non-inventory items can also be directly purchased using payment forms. For more information on buying without purchase invoices, see this Guide.