| You can handle out of pocket expenses by members without a checking
account. Instead of writing checks, members pay for expenses directly
with their credit cards. This is how many companies handle expenses.
The member then submits an "expense report" to the treasure who enters
the expense and reimburses the member with units, instead of cash.
Here's an example. Let's say John spends $34 for postage stamps on
11/11/2001 for his club. Also assume his club's last valuation date
was 11/01/2001. You enter this in bivio in two steps:
- Enter a $34 Account Expense for "Envelopes and Stamps" on 11/11.
- Enter a $34 Member Payment for John on 11/11 and a 11/01 val. date.
John is credited for $34. He is in effect, making an investment in
the club. If he doesn't want to make that investment, he just skips
his next payment or reduces his next payment by $34. Either way, the
accounting is straightforward.
The above transactions should be added to a special account called
"Out of Pocket Expenses". This account will always be zero, because
the expense and compensating payment occur on the same day. To create
the account, go to your
Account Summary and click on the
new account icon.
Create an account called "Out of Pocket Expenses".
The Out of Pocket Expenses account contains all the transactions which
were "reimbursed" without having to introduce an extra step of cash
changing hands. It's simple and clear. And, you don't need the added
expense and complication of a checking account.
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