A supplied expense is an amount that a company or professional pays on behalf of its client. For example, imagine that your firm files the books with the commercial registry on your behalf. The consultancy pays the registry and then charges this expense to you.
How to reconcile this supply in Holded?
Step 1: Record the invoice on which the supplement is charged
The invoice you receive from the consultancy will include the VAT for the service rendered and the amount of the supplement paid. To register this invoice:
Go to Expenses.
Create a purchase invoice
Click on the arrow next to "Add line".
Choose "Add Supplement" from the drop-down menu.
Step 2: Reconcile the payment of the expense
Since you have paid the invoice, you need to reconcile this payment with your bank.
Go to Banks and find the corresponding payment transaction.
Reconcile it with the consulting invoice.
Now, in the "Reconciled" section, you will see that the invoice is associated with the cash outflow from your bank account.
Step 3: Recording and payment of the invoice recording the expense
When the invoice is received from the commercial register, it will be posted as follows:
Go to Expenses and create the invoice from the commercial register.
To correctly manage the payment of the supplied expense, we need a bridge account. This bridge account is a auxiliary account used to keep track of payments and collections of supplied expenses without directly affecting our main accounts.
Step 4: Create the bridge account
To properly manage the payment of supplies, we need a bridge account. This bridge account is a temporary accounting account used to keep track of payments and collections of supplies without directly affecting our main accounts. Follow these steps to create one:
Go to Banks, and click on "Add account".
Choose the options, "Payment gateway" and "Add manually".
Create a new account with the number 555 and name it, for example, "Supply Bridge Account".
This bridging account allows credit entries to be made with the reconciliation account (555) when recording payment on a purchase via this gateway. The bridge account is essentially an accounting account that may have been in use previously and is now associated with the manual payment gateway to facilitate the management of supplies.
Step 5: Assign the bridge account to the supplied expense:
In the side menu of the invoice created above, when adding the payment of the sub, select the "Sub bridge account" as the account against which the payment will be made.
Step 6: Final verification in accounting
Verify that everything is correctly squared in your accounting.
Go to Accounting > Chart of Accounts, and review the data.
Make sure that the vendor accounts, and account 555, are zeroed out.
Confirm that the supply expenses are correctly recorded.
By following these steps, you will have correctly reconciled a supply in Holded, ensuring that your accounts are clear and balanced.