When Robert & Stephanie De Graaf are paid by Reclaim & Timber, these payments are recorded as Management Fees expenses. Although Robert and Stephanie manage Reclaim & Timber, they are not the formal Company's Directors. However, they are the Trustees of the De Graaf Family Trust (DARE). These payments are then recorded by DARE as Management Fees Income and subsequently deducted as Beneficiary Loan Payments.

Payment Types

There are two types of payments made by Reclaim & Timber to Robert and Steph:

• Regular weekly payments of $2,500 > These payments are automatically allocated to the correct expense account in Reclaim & Timber MYOB via a Bank Feed rule. In the DARE Xero Organisation, there are also automatically coded to the correct accounts as weekly journals.
• Ad hoc Payments > Occasionally, there may be additional payments that need to be manually coded the same way. For example, payments made to the ATO for Rob & Steph's personal income tax

Record Ad Hoc Directors' Payments in Reclaim & Timber (MYOB)

1. Find the Payment in the Bank Feeds screen
2. Go to the [Allocate] Tab
   
   è  The MYOB Bank Feeds Allocate screen
   
   
   
   
3. Select/Enter the following details:
   • Contact > Select: Dare Business
   • Account > Select: 6-8100 Wages Directors (Prof Fees)
   • Job > Select: ZZZ-001 All States
   • Tax Code > Confirm: GST
4. Click on [Save]

Record Ad Hoc Directors' Payments in Dare (Xero)

1. In Xero go to Accounting > Manual Journals
2. Click on [New Journal]
   
   è  The New Journal screen opens
   
   
   
   
3. Select/Enter the following details:
   • Amounts are > select: Tax Inclusive
   • Date > type the same date the payment was made from Reclaim & Timber
   • Narration > Type: Additional Directors Payment #Paymentreason
   • Line 1: Accounts > Select: Professional Management Fees (200) - GST on Income in the Credit column type the full value of the payment
   • Line 2: Accounts > Select: Loan Beneficiary - Rob - BAS Excluded in the Debit column type 50% of the payment
   • Line 3: Accounts > Select: Loan Beneficiary - Steph - BAS Excluded in the Debit column type 50% of the payment
4. Click on [Post]