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Help with a reimbursement

QB 2005 Professional

One of our staff made a personal purchase at a vendor with whom we have a trade account. He then gave us cash in the amount of the purchase. So presumably, we'll enter the purchase as a bill on the vendor's account, and then pay it at the vendor's next billing. We'd then deposit the cash in our regular bank account.

But how should QB handle the reimbursement and its deposit? Specifically, to what QB account should we charge the initial purchase, and then how would we credit its repayment?

Reply to
PT
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Most of the accountants I work with recommend or accept, if its already setup, an Other Expense account called Reimbursables or something similar. You post both the debit & credit to that account so it zeroes out. I've also seen it done as an Other Current Asset account when you're dealing more along the lines of employee advances but some people use it for reimbursables as well.

Reply to
Tee

Hi When entering the Bill for the above transaction do not tag it with Items but instead charge it to Reimbursable and in the MEMO field put the name of the Employee. Now when you receive the payment form the Employee go to Make Deposits and in the Account Column select Reimbursable.

Victor

myQBaccountant Team Free unlimited Quickbooks Support

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PT wrote:

account, and

Specifically,

Reply to
myQBaccountant

If the amount received from the employee is nominal, then posting the receipt directly to the expense account that will eventually be charged when the bill comes in many cases is acceptable. There are times when the KISS principal takes precedence over GAAP.

Reply to
Allan Martin

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