Entering Invoices

When an invoice is received, the invoice information must be entered in Accounts Payable to pay and track the payment of the invoice.

A traditional invoice is easy to understand. If something is purchased from a department store or parts supply house, the customer generally receives an invoice, or detailed receipt from the store.

If the goal is to accurately track and account for every penny that the shop spends and where the money is spent, then a variety of things may be considered an invoice.

Posting Invoices

There are two ways to post an invoice:

• By summary, which provides an accounting for the total expenditures on the invoice to a cost account.
• By detail, which allows you to post each item of an invoice to either a cost account, inventory, or to a repair order.

Expensing Cash Payments from Cash Register

Sometime, an employee is given money out of the cash register to purchase an item for the shop. This expense should be accounted for and reconciled.

A system should be established for identifying all items paid from the cash drawer. This could be a simple note specifying the date, the amount of the transaction, and to whom the money was given. This could help reduce shortages in the cash drawer.