How to handle a purchase that was made partly via gift voucher / credit on account

Hi Paul,

In this case, you should head to Dashboard > Bank accounts > Add account > Select Owner's Funds account. Once added, you must then head to Dashboard > Expenses > Create bill > Input the full amount of the goods.

Then, once the bill has been created, you can allocate the bank transaction to this bill. The bill will then have an outstanding amount of the personal credit. You must then click into the bill, scroll down to the bottom and fill in the record payment form, selecting the Owner's Funds account as the bank account paid from.

Tommy

When I add the Owner's funds account, I presume I can give it an Account name of my choice, say "Personal funds, gift vouchers, etc". What do I put for Contact? Create a new one (me) or select "Personal transactions"?

In this situation, I need to handle both this and the fact that the purchase included both personal and business expenses. It makes the most sense to me to mirror exactly what happened, so what's the sequence I need to follow to deal with both the actual bank payment + my "Owner's fund" and the split between the business bill and the personal transaction? Sorry I still get confused around some of these more complex transactions.

Hi Paul,

Yes, you can give the account a name of your choice, and keep the contact as New Contact.

In this case, you should only raise the bill for the business expense. As the personal refund was deducted from the business expense, you should allocate a payment equivalent to the credit to the bill. Then, you can allocate the bank transaction to the remainder of this bill. This will ensure the whole bill gets included as a business expense on your Quarterly returns.

Please let me know if you have any further queries?

Tommy

Hi Tommy,

I've only just managed to come back to this. I've created the Owner's fund account, but I'm confused about what's being deducted/credited/allocated to what. Let's work with some real numbers...

• Amazon order: 35.66
• Account credit applied: 32.31
• So the amount taken (bank statement) = 35.66-32.31 = 3.35
• Part of the order that was a business expense: 7.99

I'd be grateful if you could give me a simple set of steps.

Let me see if I can work it out:

1. Create a bill for the business expense: 7.99
2. Do something with the Owner's fund account and the bill that ends up with 3.35 outstanding on the bill.
3. Somehow allocate the bank transaction to the bill - same way as normal? Or will it look different as it's been handled differently?

At the end of all this, presumably there will be a balance (I'm guessing negative) on the Owner's fund account? And it's fine just to leave it like that?

Thanks, Paul.

Hi Paul,

Just jumping in while Tommy is away.

Yes, you can definitely do this! Here is how to record it:

• Click on the Bill ID (you can find this by clicking Expenses on your Dashboard, or you'll be on this screen right after creating the bill).

• Record a payment of £4.64 on the bill, making sure to select the Owner's funds account.

• You can then allocate the remaining £3.35 from the bank explain screen on your business bank account.

This will leave a balance in your Owner's funds account. You can either leave this balance as it is, or pay yourself back later (which you would record as a transfer from the business bank account to your Owner's funds).

All the best, John