Budgeting and Banking

[Former Member]

Hi,

1. I want to know why budget is entered in the debit side in a journal.If an expence account is initialised for budgeting how can it be debited?From expence account we willbe crediting only.Can somebody help?

2.I also want to know why house bank is given both in payment method and in BusinessPartner.What is the sigificance of that?

Regards,

Sekar

[msundararaja_perumal · Accepted solution]

Hi,

From your post:

1. I want to know why budget is entered in the debit side in a journal.If an expence account is initialized for budgeting how can it be debited?From expence account we willbe crediting only.Can somebody help?

Reply:

Have you hear of Golden rules of accounting

PERSONAL ACCOUNT : Debit the receiver

Credit the giver

(Its is related to person, firm etc....................)

REAL ACCOUNT : Debit what comes in

Credit what goes out

(Its related to goods, cash etc.......................)

NOMINAL ACCOUNT : Debit all expenses and losses

Credit all incomes and gains

(Its related to incomes and expenditure (both Direct & Indirect))

If you have further doubt pls connect the accounting person in your firm

From your post:

2.I also want to know why house bank is given both in payment method and in BusinessPartner.What is the sigificance of that?

Reply:

In Payment method its used as default account in incoming payment and also used in payment run wizard.

And in payment system,the house appears by default if you have made default bank setup in Administration->Company details(under basic initialization)

Here after i request you to post a single query in a thread.Hope my reply is helpful.

Rgds,

Sundar