How to record bank credit when expense is in one month and payment is in another

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Posted on by MikeL04

I'm sure this question has been answered but I'm not using the right words to find it.

We have an expense (such as highway tax) that applies to March and the payment is withdrawn from our bank account in April. The way we currently handle it is through a Purchasing Transaction Entry and enter the checkbook ID, Check #, Date and Payment #. Problem with this is it records both the expense and check in March. What should I use so the expense is posted to March and the check is posted to April.

Thanks you in advance,

Mike

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MikeL04 on at

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RE: How to record bank credit when expense is in one month and payment is in another

Thanks Heather.

That works. Would have responded early but wanted to go through a full cycle before responding.
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HeatherD 425 on at

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RE: How to record bank credit when expense is in one month and payment is in another

Mike,

You can click the expansion button next to check to change the check date; however, I would recommend instead two entries. Use Payables Transaction Entry to record the invoice (expense) and allow the offset to go to Accounts Payables for the date of the expense. Then record the payment under Transactions -- Purchasing -- Manual Payment using the date of the payment. Make sure to apply the payment to the original invoice.

Let me know if you need further clarification.