Explaining payment that covers Salary and dividend

Hi Peter - best is to treat the 1,000 as a transfer to the DLA (bank account) then make two payments out of that account, one to pay off the salary bill and the other to pay off the div creditor.

Cheers Paul

Aha, looks like I've been doing this wrong. up to now. I have no DLA bank account.

Up to now I was just paying myself (and as an entity that is connected to the Director cash account and after raising the support ticket I can see that is why I was getting the error above).

So is it correct i would need a DLA, and then two entities for myself (sole director), e.g. (1) Pete (director remuneration) and (2) Pete (director dividend). Or just one entity which gets paid salary, dividends, and cash expenses.

You can probably tell I'm a bit confused.

Hi

The Director's Loan Account feature within Banking is unique I think to CB and is a great way to handle all transactions with a director, so any general money you lend the company is explained as a transfer from the DLA to the main bank account and then when you pay yourself back this is a transfer from the main bank account to the DLA. Similarly, as I say above, it's a good way to pay off bills or record expenses that a director has claimed or made for the company.

You only need one entity and, in fact, rather than entering two payments you can just create one "Money out" entry against the DLA and when you come to explain it and you enter yourself as the entity you should be presented with the unpaid salary bill so "allocate" £671.67 against that and then, using the main explain screen, explain the £323.83 to the director's dividend account and "Add New transaction".

You'll then have two lines on the screen explaining the total £1,000 and you just hit the "Add transaction" to process them both.

Hope that's OK?

So I mya have this in a bit of a mess (I have been getting possibly different advice from support, or else I have been misinterpreting.

Currently I have a Cash account, the entity is me (i.e. Pete)

I also have the suppliers:

Pete Expenses and Pete Dividends - should I delete these?

Should Pete be the same entity for the DLA account?

Sound like the Cash account is the equivalent of the DLA so the balance should be moved to the DLA.

How many Pete's are there in real life?

I have Paul Scholes as the entity for the DLA and my salary/expenses and also for dividends, although the dividend one is a shareholder rather than an entity, set up within the Dividend tool.

Think I need to back out here and let support take over but refer them to what I've said above.

In real life there is only one Pete (company has one director = me and no employees)

Anyway I'll get back to support and try to get it fixed.