How to Spend and Receive Money (Record Expenses and Income)
In AccountEdge there are several ways to account for income received an expenses paid. Spend and Receive Money are the simplest ways to accomplish these actions.
The term "spend money" refers specifically to recording payments for transactions for which a purchase has not been recorded. These include equity drawings, bank charges, telephone bills, and so on. These types of payment can be entered using the Spend Money window or by selecting the Spend Money transaction type in the Bank Register window.
The Spend Money window lets you record more details about the payment and allocate the payment to more than one account. The Spend Money window allows you to record transactions that affect your company’s checking accounts, credit card accounts, petty cash accounts and other cash accounts.
If you’ve recorded purchases using the Purchases Command Center, this window shouldn’t be used for paying your vendors. Instead, use the Purchases Register window or the Pay Bills window to make those payments.
Even though everything looks like a check in the spend money it will be used for any kind of payment and you can use that check # field liberally. It accepts both numbers and letters so if you are actually using your debit card you could use the word DEBIT as the check number. The options for recording spend money transaction’s are summarized below.
To Spend Money:
- Go to the Banking module and click Spend Money. The Spend Money window appears
- Specify how the payment is to be made:
- If you are paying the vendor electronically using Vendor Payments, click Group with Electronic Payments
- If you are paying the vendor by some other means—such as by cash, check, credit card, or Internet banking—type or select the account you are paying from in the Pay from Account field.
- Fill in the information in the check area of the window, just as you would if you were writing a paper check. Enter the payee card, check number (or other identification number), amount, memo, etc. (NOTE: You may leave the Payee field blank and still record the check)
- If you want to change the default payee address, type or select the payee’s address in the Payee field.
- Allocate the payment to the appropriate account:
- Select or type the account to which you want to assign the check amount
- Type the allocation amount here
- [Optional] Assign the check amount to a job by entering the job code here
- [Optional] Type a memo for each line item you enter in the transaction
- If your payment covers more than one account, repeat step 5. You would do this, for example, when needing to allocate an expense with a number of different types of expenses on it: postage, magazines, stationery, etc
- If you want to assign the payment to a particular category, select a category from the Category list. For more information about categories, see this article
A Note on Paying Vendors Electronically
Vendor Payments is a subscription service you can use to pay your vendors over the Internet directly from your software. See this article for more information.
When you have recorded the payments you want to pay using Vendor Payments, and you choose to group a Spend Money transaction with other electronic payments, an individual cash-disbursement transaction is recorded in the linked electronic payments account. You can then make an electronic payment that will include the group of Spend Money transactions you’ve selected. For more information, see Preparing electronic payments’.
The term receive money specifically refers to recording receipts other than payments relating to invoices. These receipts include loans, owner investments, interest, adjustments, and so on. These can be entered using the Receive Money window or by selecting the Receive Money transaction type in the Bank Register window.
If you’ve recorded sales using the Sales Command Center, this window shouldn’t be used for recording customer payments. Instead, use the Receive Payments window.
You can receive money directly into an account or you can group them into the undeposited funds account. When you record a Receive Money transaction into the undeposited funds account, an individual cash-receipt transaction is recorded in the undeposited funds account, from where you can create bank deposit.
To Receive Money:
- Go to the Banking module and click Receive Money. The Receive Money window appears.
- Specify the account the payment is to be received to:
- Deposit to Account—In the Deposit to Account field, type or select the required bank account.
- Group with Undeposited Funds—Choose this option if you want the deposit to be recorded in the undeposited funds account. After you have grouped all the deposit transactions you want, you can make one bank deposit for all the undeposited funds. For more information, see Using Prepare Bank Deposit
- In the Payor field, type or select the payor’s name.
- In the Amount Received field, type the amount received.
- [Optional] In the Payment Method field, select the payment method.
- [Optional] If you want to record additional details about the transaction, such as a check number, click Details and record the details in the Applied Payment Details window that appears
- [Merchant Account Service users only] If you received a credit card payment, process the credit card payment. For more information, see this article
- Type the date of the transaction.
- [Optional] Type a detailed comment in the Memo field to help you identify the transaction later.
- Allocate the amount to the appropriate accounts:
- Type or select the account to which you want to assign the deposit.
- Type the amount you want to assign to each account. The total amount in this column must equal the amount in the Amount Received field before you can record the transaction.
- [Optional] Assign the amount to a job by entering the job code here.
- [Optional] Type a memo for each line item you enter in the transaction.
- If the payment covers more than one account, repeat step 10 on a new transaction line.
- If you want to assign the transaction to a particular category, select a category from the Category list. For more information about categories, see ‘Tracking financial information’.
TIP: Save the deposit as a recurring transaction. To store the transaction as a recurring transaction so that you can use it again, click Save as Recurring. In the Edit Recurring Schedule window, enter the necessary information and click Save.
- Click Record.
Merchant Services are a subscription service you can use to receive credit card payments over the Internet directly from your software. See this article for more information.