This article explains why you might not see the 'Money Paid to User' or 'Money Received from User' bank transaction explanation options and how you can resolve this issue.
If you record a bank transaction that involves paying money to or from a user on your FreeAgent account, you need to select the ‘Money Paid to User’ or ‘Money Received from User’ option when you explain the transaction.
If you can’t see these options, it could be for one of the following reasons:
The bank account is a personal account
If the bank account you use for your business has been set up as a personal bank account in FreeAgent, you will need to mark it as a business account in order to gain access to the ‘Money Paid to User’ and ‘Money Received from User’ options when you explain bank transactions.
To mark the bank account as a business account, navigate to the ‘Banking’ tab at the top of the screen and select 'Bank Accounts' from the drop down menu.
Choose the relevant bank account from the list of accounts.
From the bank account screen select ‘Edit Details’.
Next, untick ‘This is a personal account’ and select ‘Save Changes’ at the bottom of the page.
The bank account is a foreign currency account
FreeAgent doesn’t currently include the ‘Money Paid to User’ option in multi-currency bank accounts. If you need to pay money to a user in a currency other than your main currency (if you have a UK FreeAgent account, this will be GBP and if you have a universal account, this will be the currency you chose when you set up the account) follow these steps:
- Explain the ‘Money Out’ transaction in your foreign currency account as a transfer to your base currency bank account. FreeAgent will then create an automatic ‘Money In’ entry in your base currency bank account.
- Create a manual ‘Money Out’ payment in your base currency account for the same value as the automatic 'Money In' transaction that FreeAgent created and explain the transaction using the ‘Money Paid to User’ option.
You’re looking at basic explanation options
If you’re viewing the transactions in your bank account in FreeAgent and you’ve selected the tick box on the left-hand side of a bank transaction, you’ll only be able to see the basic options in the ‘Type’ drop-down within the ‘Explain transactions’ area.
To view the full selection of options - including ‘Money Paid to User’ and ‘Money Received from User’ - make sure the box on the left-hand side of the transaction is unticked and then click on the transaction description. Select the appropriate option from the ‘Type’ drop-down menu, add all the relevant information and then select ‘Explain Transaction’.