How to handle an owner purchase.

Scenario:

Your company owner occasionally buys something for the business using personal funds. Here's how to record that properly in SI+.

Simple Journal Method (Owner as Bank Account)

This method lets you record only the debit side, treating the owner as if they were a bank:

1.Go to Ledger > Account Setup.

2.Select the account (e.g., "Owner's Loan" or "Owner's Contribution").

3.Tick the checkbox to mark the account as Reconcilable.

4.Create a cash journal, using the owner's account as the credit (i.e., the source of funds).

5.Debit the appropriate expense or asset account (e.g., Stationery, Equipment).

Note: If the owner isn’t reimbursed, this transaction represents an investment in the business. You can record this in a capital (equity) account called “Owner’s Contribution” or you can handle the purchase as a loan, which uses a liability account

How to Classify the Owner’s Payment:

Situation                                          Account Type        Example Account                                Note

Owner will not be reimbursed        Equity                        Owner's Contribution                        transaction represents an investment in the business.

Owner will be reimbursed                Liability                Loan from Owner or Owner Payable        handle the purchase as a loan