Record money to or from a director
Once a person has a running account, it behaves like any other category on your banking screens. There is no special "director's loan" form — you record the money the way you record everything else, and pick their account as the category.
Before you begin
- The person needs a running account. See Directors' loan accounts.
- You need the normal permission for whichever screen you are using — recording an expense, recording a receipt, or posting a manual journal.
The director puts money into the company
Use Receive Money.
- Go to Banking → Receive Money → Record Receipt.
- Pick the bank account the money arrived in, the date, and the director as the Payer.
- On the line, describe what it was — "Director's loan introduced" — and pick their running account as the category.
- Save.
The company now owes them that amount: their account moves into credit.
The company pays money out for a director
Use Spend Money.
- Go to Banking → Spend Money → Record Expense.
- Pick the bank account, the date, and the director as the Payee.
- On the line, describe what it was — "Season ticket loan", "Advance to director" — and pick their running account as the category.
- Save.
They now owe the company that amount, or owe more than they did. This is the case that raises the questions your accountant will ask about, so Sales Scribe may say something about it afterwards — or ask you to confirm first. Both are covered in When an officer resigns.
A running account is offered on both screens, whichever accounting type it has. Ordinary accounts only move one way — an expense is spent, income is received — but a running account is two-way by definition, and that is the whole point of it.
Anything else: a manual journal
For entries no bank movement creates — reallocating an expense to a director, crediting interest, a year-end adjustment — use a manual journal and put their running account on one side of it.
Manual journals are available on the Pro plan and above.
Pick the right person
Every running account is labelled with its holder's name on every picker, so two directors' accounts never read the same. If you see a list of identically-named accounts, that is a bug — please report it.
What appears in your ledger
The journal line posted to the category carries your own line description:
Spend money SM-00004 - Advance to former director
If several lines on one document are coded to the same account, they post as a single journal line and the descriptions are joined with a semicolon; duplicates collapse. If you left the description blank, the memo is just the document reference.
This matters because that memo is what you will read months later on the general ledger, the account transactions report and the loan account statement. The ledger records what moved, not why — so it repeats what you said rather than guessing a category name.
Posted memos are never rewritten. If you posted something before this behaviour existed, or with a blank description, its memo stays as it was. Only new postings carry the new wording.
Undo
Spend Money and Receive Money post immediately — undo by voiding, which posts a reversing journal. The original stays visible, and both entries appear on the statement, the reversal marked correction and the original marked later reversed. A reversal is a correction, not a repayment, and the statement says so.