Handle an owner purchase
How to handle an owner purchase.
Does your company owner ever use personal funds to buy things for the business?
Recording that transaction in SI+ usually requires a journal entry, a debit and a credit.
Here’s a simpler workaround to record only the debit side, thus shortening the process.
We are going to handle the owner as if he is a ‘bank’ so if you do a cash journal the account you are going to post against (the credit entry) will be displayed there.
Go to Ledger > Account Setup, select the account you want to post to and mark it as Reconcilable.
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
If the owner is reimbursed later then you can add the owner as a supplier and do a supplier journal.