Cash Purchase as Vendors Name


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One teeny weeny doubt. Is it right to post 'cash purchase' in vendor's name in software? What are possible outcome such postings?
 
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Fidget

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What's the teeny weeny doubt that you have about it not being right?
 
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Fid dude,

First of all thanks for the response. Is it right? Yes/No.
 

kirby

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No, not right. You need to be able to tell management who got paid, if they ask.
 
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No, not right. You need to be able to tell management who got paid, if they ask.
Is it ok if I post the Supplier name in the memo rather than adding the supplier details in address book and allocate it as sub head (for reference) to Cash purchase expense?
 
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Fidget

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Yes, but only if you can back up the payment with good enough evidence - receipts etc and it is ad-hoc cash purchases. If it's a regular supplier being paid cash, then they should be set up as a supplier.

To try and avoid having any reference to whom cash was paid to has some form of fraudulent activity going on stamped all over it.
 
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