First the bank sheets...
The current account file should reconcile against your actual bank statements and the cash account should track what physical currency should be held in cash (e.g. a till or petty cash tin).
You record sales and purchase when the invoice is issued (the invoice date) and enter the same transaction in the current account or cash work book when the item is paid for. Purchases paid for by your business are entered as 'payments' in current account. Sales paid for by the customer are entered as 'receipts' in current account.
Profit (which is taxed) is over simplistically Sales-Purchase, however your cash flow is based on your creditors and debtors position which is tracked separately through the cash and bank workbooks.
Sales increment your "Trade Debtors" (people who owe you money) and a Receipt entered in the current account sheet decrements the Trade Debtors. A similar pattern occurs with Purchases, these increment "Trade Creditors" (people you owe money). A Payment entered in current account decrements the money owed.
As for the Err 504...
I take it you are using OpenOffice? We have observed some version incompatibilities and also a problem with absolute links between the files. The first thing to do is ensure you are running OpenOffice 3.3.0. If you are still seeing the errors you have a couple of choices:
- Download a fresh copy from your original confirmation email, unzip to a fresh folder and copy in your existing Sales and Purchases files.
- Download the Excel 97-2003 version and re-enter the data (OpenOffice supports this version)
- Zip up and email us your package and I'll take attempt to to correct any broken links.