Hi. In the Sales Journal, is it be possible to set up a transaction to debit a payable, instead of Cash or A/R? We am attempting to do the following transactions in Sage 50 2019 Canadian Edition:
1) Increase the size of petty cash for our shop; and
2) Sell an item of inventory from the warehouse to the shop at cost equal to the increase in petty cash.
The accounting transactions would normally be:
DR Petty Cash
DR Store Expense
CR Equity
CR Chequing
Increase petty cash and cut cheque for cashing
DR Cash
DR Cost of Sales
CR Sales Revenue
CR GST Payable
Purchase inventory using petty cash
In this case, we are increasing petty cash just to facilitate the sale of a specific item of inventory to the shop at cost. Normally, the two accounting transactions above would involve cashing a cheque to provide petty cash for the shop, then re-depositing that same cash for the sale of inventory from the warehouse to the shop. (Yes, we're old school, still dealing in cash transactions.) To bypass this out-and-in of cash, is there a way in Sage 50 to do something like the following:
DR Petty Cash
DR Store Expense
CR Equity
CR A/P
Increase petty cash and create payable to the shop
DR A/P
DR Cost of Sales
CR Sales Revenue
CR GST Payable
Purchase inventory and reduce the shop's payable.
Thanks in advance!