Software: MoneyWorks Desktop accounting software
You record the Back Charge into the MoneyWorks via Purchase Invoice when received the bill from the Client (your main-contractor). Back Charge is a project related expenses such as damages, work which has done on your behalf, etc. The purchase invoice which you recorded debits the Back Charge and credit the Accounts Payable account.
MoneyWorks does not allow you to contra the purchase invoice (accounts payable) directly with the outstanding sales invoice (accounts receivable), a ‘Clearing Account’ (a bank account type) is used to offset the two.
Then, use the payment feature in MoneyWorks to pay the purchase invoice with the clearing account and a receipt to receive the contra amount of the outstanding sales invoice into the clearing account. The payment debits the Accounts Payable and credits Clearing Account, whereas the receipt debits the Clearing Account and credits the Accounts Receivable. The Clearing Account should not have any balances as a result of contra between receivable and payable.
Software: Intuit QuickBooks accounting software
You did a few general journal transactions with the Accounts Payable account, but these journal transactions did not capture in the Vendor (Supplier) Balance report. Why?
The Accounts Payable is part of the Current Liabilities, which is a ‘Control’ accounts capturing all the bills and payments related to Vendors, whereas the Vendor Balance Detail Report is like a sub-ledger, sum up the transactions by each vendor.
Based on the relationship between the accounts payable and the Vendor Balance report, unless the account used is not an account payable type, any transactions which tagged with the account will show in the report.
If you preferred using the General Journal than entering Bill to record amount owing to the Vendor may have created the ‘accounts payable’ as a Current Liabilities type of account accidentally instead of an Accounts Payable type. Hence, it doesn’t capture into the Vendor Balance report due to wrong account type used. Although the account name (Accounts Payable) could be the same, the account type is different.
To resolve the problem, create a new account with the correct account type and amend the transactions if there is a mistake made. You should consult the accountant before you make any changes to the record as it may affect the financial report. QuickBooks may allow you to make changes to the database, but it does not imply that you can change it (Especially if the account has closed or transaction is in the previous financial period).
Software: MoneyWorks v7.3.8 accounting software
Besides having a complete list of transactions of the debtor or creditor, the Payment History enables you to find information regarding invoices and payments (or receipts).
Assuming you issued a credit note for a customer and contra part of it with an invoice. This “information”, which is the credit note, the invoice with the contra and outstanding amount, shows in the Payment History.
The Payment History provides an overview and traceability of what and how much has been paid/contra.