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How to handle Bank Facility?

posted Jul 12, 2009, 9:26 PM by Unknown user   [ updated Aug 13, 2009, 3:01 AM ]
For bank facility, when a company need to pay a supplier, the bank will make the payment on behalf of the company to the supplier first. The company will then pay back to the bank later. The adjusting entry will be as below:
  • When bank pay to the supplier and the company have not pay back to the bank yet:
  Dr Cr
 Create Credit Memo (supplier side)
 Cashbook Bank Facilities
  • When the company pay back to the bank:
  Dr Cr
 Create Payment Voucher
 Bank Facilities
 Bank

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