Solved
Employee and/or Director Reimbursements via Spend Money
Hi, Ive noticed that reimbursing an employee for expenses is now done through payroll but for years i have done it through spend money using their payroll card, is there a problem with this ??? A...
Hi Jen65
A Director loan account is generally set up to track amounts paid by and owing to the Director. So if the Director pays for a business expense on his personal credit card you would:
- record the business expense as either a Pay Bill or Spend Money transaction and change the Pay from account to the Director loan account. Whether you record the purchase as a Spend Money or Enter Purchase and Pay Bill, the expense is allocated to the applicable expense or Cost of Sale account
- when you reimburse the Director record a Transfer money transaction, this shows the amount as a withdrawal in the bank account and clears the Director loan account
- go to Find Transactions and search by the Director Loan account, there should be a credit for the purchase transaction and a debit for the reimbursement
Please let me know if you need further help with this.
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
- record the business expense as either a Pay Bill or Spend Money transaction and change the Pay from account to the Director loan account. Whether you record the purchase as a Spend Money or Enter Purchase and Pay Bill, the expense is allocated to the applicable expense or Cost of Sale account
