Difference between revisions of "Receiving and Paying Bills"
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== Receiving a Bill == | == Receiving a Bill == | ||
− | * Is this a bill for a shipment or a | + | ===Transaction date=== |
+ | * Is this a bill for a shipment or a utility? | ||
**If a shipment, the transaction date is the date of the shipment (Bill of Lading date) | **If a shipment, the transaction date is the date of the shipment (Bill of Lading date) | ||
− | **If a service, the transaction date is the date of the bill (the date the bill was created, not when we received it). | + | **If a utility, such as garbage service, the transaction date is the date of the bill (the date the bill was created, not when we received it). |
=== In Gnucash === | === In Gnucash === | ||
Line 55: | Line 56: | ||
* Transfer field should be the appropriate expense account. | * Transfer field should be the appropriate expense account. | ||
* Initial the invoice (in an area that we don't send away in the mail) and date it. | * Initial the invoice (in an area that we don't send away in the mail) and date it. | ||
+ | |||
=== Paper === | === Paper === | ||
* If there is an associated bill of lading, match it to the bill and fasten them together. Note any discrepencies. | * If there is an associated bill of lading, match it to the bill and fasten them together. Note any discrepencies. | ||
Line 66: | Line 68: | ||
=== In Gnucash === | === In Gnucash === | ||
− | * | + | * The check can be entered in the A/P account or the main checking account |
− | |||
* Enter the date the check was written | * Enter the date the check was written | ||
* Enter the check number | * Enter the check number | ||
− | * Enter the vendor name in description | + | * Enter the vendor name in description, this should autofill the checking account and the correct A/P account, but check to make sure they are correct. |
− | * | + | * Fill in the correct amounts in both account lines. |
=== In file cabinet === | === In file cabinet === |
Latest revision as of 14:50, 3 February 2010
Definitions
- Vendor
- Someone we owe money to, for instance a utility company.
- Bill of Lading
- A bill of lading is a document which is issued by a transportation carrier to us acknowledging that they have the stuff and will ship it. For example, Total Reclaim, Inc. picks up monitors and gives us a copy of a "receipt" (the bill of lading) that says they have 24 pallets of monitors containing 446 monitors. Later on, they'll write us a bill which will reference the bill of lading.
- Bill
- Document from a vendor showing us new money that we owe.
- Statement
- Document from a vendor showing us how much money that we owe -- old money and new. If we pay our bills on time, we might get no statements, or the statements won't show us owing any more money than the most recent bill does.
Current Vendors
This list will change from time to time. Don't assume it is a complete list.
- City of Portland -- Water and sewer
- Comcast -- Internet service provider
- Hallmark -- Gold bearing material processing
- McGuire Bros -- Rent
- Metro Metals -- Metals processing
- Northwest Natural -- Gas (heat)
- OR OSHA -- Regulates safety for Oregon
- PGE -- Electricity
- Integra -- telecom (phone and internet) service
- SAIF -- Workers Comp and Liability insurance
- Schnitzer -- steel processing
- Total Reclaim -- Monitor processing
- Waste Connections -- Garbage collection
Receiving a Bill of Lading
In Gnucash
Based on similar bills of lading, enter an estimated amount owed in the appropriate "Account Payable" account. For example on a Total Reclaim bill of lading for monitors that will result in a bill to us:
- Choose the "Total Reclaim A/P" account.
- Set the transaction date as the date the material was shipped.
- Review the size of payments so far. It appears that a reasonable average is $3400.
- Enter Total Reclaim (estimate BOL# 123456) in the description field (where 123456 is the actual number from the BOL).
- Enter "Expenses:Monitor Recycling" and an amount of $3400 in the "Tot Decrease" field of one line.
- Enter "Liabilities:Accounts Payable:Total Reclaim" and an amount of $3400 in the "Tot Decrease" field of another line.
- Initial and date the Bill of Lading and put it in the "To be filed" basket.
- Note
- The BOL is often entered into gnucash at the time we get the bill and so is not an estimated amount, but the expense still needs to be recorded as happening on the date of shipment.
In file cabinet
- File in Monkey House File Cabinet
- Top drawer under Operations: Utilities, Recycling, Sales and Invoices.
- File in appropriate vendor folder in alphabetical order.
- File with the most recent document at the front of the folder.
Receiving a Bill
Transaction date
- Is this a bill for a shipment or a utility?
- If a shipment, the transaction date is the date of the shipment (Bill of Lading date)
- If a utility, such as garbage service, the transaction date is the date of the bill (the date the bill was created, not when we received it).
In Gnucash
- Open appropriate accounts payable account (Match the vendor name. Every vendor that bills us should have an A/P account)
- For shipments, check if there is an estimated amount already entered in the books
- Enter the amount into the expense field (or correct the estimate)
- Transfer field should be the appropriate expense account.
- Initial the invoice (in an area that we don't send away in the mail) and date it.
Paper
- If there is an associated bill of lading, match it to the bill and fasten them together. Note any discrepencies.
- Pay the bill or place it in the "To be paid" basket.
Paying a Bill
- Physically write the check.
- Prepare an envelope for mailing (including stamp).
- Put the check sideways in the envelope but do not seal it. (It still needs to be signed by a check signer).
- Put ready to mail bill, check, and envelope in the Checks to Sign and Mail folder.
In Gnucash
- The check can be entered in the A/P account or the main checking account
- Enter the date the check was written
- Enter the check number
- Enter the vendor name in description, this should autofill the checking account and the correct A/P account, but check to make sure they are correct.
- Fill in the correct amounts in both account lines.
In file cabinet
- Write check number, date, and amount on bill stub, and initial it.
- File stub of bill in vendor folder with the most recent date in the front
Who Can Sign Checks?
- Liane
- Caitlin
Receiving a Statement
In Gnucash
Check to see if our account agrees with their statement. Note any past due amount. This is an indication that we need to prioritize paying the vendor.
In file cabinet
- File in vendor folder with the most recent date in the front