Cash Purchase as Vendors Name

[Mird]

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

 

[Fidget]

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

 

[Mird]

Fid dude,

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

 

[kirby]

No, not right. You need to be able to tell management who got paid, if they ask.

 

[Mird]

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?

 

[Fidget]

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.