Owner drawings

Owner drawings can involve money, stock, or machinery, applicable solely to sole traders and partnerships, not limited companies. This mirrors the owner or business partner receiving payment

• Record money payouts as "Other Payment" to accurately track funds withdrawn from the designated bank account
• For payments in stock or assets, enter this as a journal
• Use the special 3260 Drawings category we have already set up for you
• If you are a partnership, we recommend that you create an additional category for each partner

Create a category for each partner

1. From More, choose Business Settings.
2. From the Financial Settings section, select Chart of Accounts.
3. Select New category.
4. Enter the details of the category:
   • Name - we suggest you use Drawings and the name of the partner
   • Category code - we recommend that you use a consecutive number from your Drawings category such as 3261
   • Category - choose Equity
   • VAT rate - choose No Vat
   • Visibility - choose Money Out

Enter a money payment

Check the category visibility

This is to make sure you can select the category when entering the payment.

1. From More, choose Business Settings.
2. From the Financial Settings section, select Chart of Accounts.
3. Select the row for the 3260 Drawings category.
4. Enter the details of the category
5. For the Visibility - choose Money Out and Save.

Enter the payment from a bank feed

1. Open your bank feed transactions page.
2. Find the relevant payment.
3. Choose Create.
4. From the What dropdown list, choose 3260 Drawings or the category created for a partner.
5. Select Create.

Enter as a new payment

1. From Banking, open the required bank account.
2. From New Entry, choose Money Out.
3. Enter the details of the payment. Make sure you select:
   • Category - choose 3260 Drawings or the category created for a partner
   • VAT rate - choose No VAT
4. Click Save.

Enter a payment in stock or assets

For example, the owner has taken £25 worth of stock for their own personal use.

1. From Journals, choose New Journal.
2. Enter the Reference, Date and, if required, an additional Description.

3. Enter the following details then click Save.

   Category	Details	Debit	Credit	Include on VAT Return?
   5000 - Cost of Sales Goods	Owner drawings	0.00	25	Leave clear
   Drawings – equity (3260)	Owner drawings	25	0.00	Leave clear

4. If you reclaimed VAT on the purchase of the stock, you must include this in the journal. Enter the journal in the following way

   Category	Details	Debit	Credit	Include on VAT Return?
   5000 - Cost of Sales Goods	Owner drawings	0.00	22.28	Leave clear
   2201 - VAT on Purchases	Owner drawings	0.00	22.28	Leave clear
   Drawings – equity (3260)	Owner drawings	25	0.00	Leave clear