Director Paying Supplier Invoices

 

THE MOST COMMON TYPES OF PAYMENTS TO DIRECTORS ARE THE PAYMENTS OF DIRECTORS REMUNERATION, I.E. DIRECTORS SALARY.

 
ADDITIONALLY, DIRECTORS WOULD OCCASIONALLY PAY FOR COMPANY EXPENSES / SUPPLIER PURCHASES.
 
WHERE A DIRECTOR PAYS OFF TRADE CREDITORS / SUPPLIERS FOR INVOICES ISSUED TO THE BUSINESS,THE FOLLOWING RECORDS:
 
 
  • THE DIRECTOR PAYING OFF THE SUPPLIER
  • THE REDUCTION OF THE AMOUNT OWED TO THE SUPPLIER
  • THE AMOUNT OWING TO THE DIRECTOR BY THE BUSINESS
 
 

BANK > PAYMENTS

 
Bank Account                   
 

In the bottom right hand corner select the account making payment.  Select the Directors Account assigned to the Director who made the expense payment.

 
 
Date                        
 
Enter the date the expense is incurred.
 
 
Reference              
 
Enter an appropriate reference.
 
 
Supplier/Payee Name       
 
If paying off an actual purchase invoice issued to the company then select the Supplier from whom the invoice is received.
 
 
Nominal Account  
 
This will default to "Trade Creditors" and cannot be amended.
 
 
Amount                  
 
Enter the exact amount of the payment
 
 
THIS RECORDS THE PAYMENT TO THE SUPPLIER, REDUCING THE AMOUNT THE BUSINESS OWES THE SUPPLIER AS IT HAS BEEN PAID BY THE DIRECTOR.
 
THIS WILL ALSO CREATE A BALANCE OWING TO THE DIRECTOR ON HIS ASSIGNED "DIRECTORS ACCOUNT".
TO VIEW THIS BALANCE SIMPLY GO TO REPORTS> USER DEFINED REPORTS> AND RUN THE REPORT SELECTING THE DIRECTORS ACCOUNT.
 
 
 

WHERE A DIRECTOR PAYS EXPENSES (NOT INVOICES) ON BEHALF OF THE BUSINESS

 
BANK > PAYMENTS
 
Bank Account       
            

In the bottom right hand corner select the account making payment.  Select the Directors Account assigned to the Director who made the expense payment.

 
 
Date                        
 
Enter the date the expense is incurred.
 
 
Reference              
 
Enter an appropriate reference.
 
 
Supplier/Payee Name       
 

Select a Payee from the existing list (F2) or type the first letter of the Payee name, use arrow down key to scroll through the existing Payee names.

To setup a new Payee simply type the new Payee name. The program will recognise the new name does not already exist and prompt you to specify if it is a new “Supplier” or “Other”, select “Other” to add the new name to the Payee list.

 
 
Nominal Account  
 
Choose the relevant expense account to which the expense paid by the Director on behalf of the business relates.
 
 
Amount                  
 
Enter the amount per the cheque or per bank statement in the case of Direct Debits/Standing Orders.  This will always be the GROSS amount when VAT is involved within the transaction.
 
 
VAT 
                                                            

If applicable a VAT rate can be attached to the amount entered which will record the VAT reclaimable from the Revenue through to the VAT account and VAT report.

While within the amount box use the arrow keys to scroll through the VAT rates available in order to capture the VAT on any payments for which you may reclaim VAT from the Revenue and for which the VAT was not previously captured. The VAT element will flow through to the VAT report to be included within the Normal VAT Report for the period.

 

 
 
 

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