Record a cash purchase

Before you start

Use a cash purchase when you pay at the moment you buy - a shop receipt, a taxi, a small repair. If the vendor sends you a bill to pay later, record a vendor bill instead.

Steps

1. Open Accounting > Vendors > Cash Purchases and click New.
2. Choose Paid From - the cash or bank account the money came out of, for example 1020 - Petty Cash.
3. In Paid To (Payee), choose a vendor or type any name. Type the receipt or cheque number in Cheque / Reference No.. The Date starts as today.
4. Fill the first line: choose the expense Account, add a Description, then type the Qty, the Unit Price and choose the Tax (UAE VAT 5% if the receipt shows VAT). Subtotal, VAT and Total update as you type. Click Add Line for more lines.
5. Click Save & Post. The cash purchase gets a number (CASH-00008, for example) and the status Posted. Paid From shows the account you chose, and the money is taken from it at once.

What happens next

The expense appears in your Profit and Loss and the cash or bank balance goes down. There is nothing to pay later, so the purchase never shows in what you owe vendors.