Deduction for Employee Purchase in Payrolll

Jen65

We have a coffee machine which we purchase coffee pods for, my director has the same machine at home and has asked if i can order extra when i place my order for the office and then deduct his portion from his pay in payroll.

 

Therefore i have setup a deduction category name (employee purchase) amount for $100 in payroll which is the cost.

 

Linked payable account is - Payroll deduction.

 

Question is do i then do a journal entry from payroll deduction to the expense account the money came out off to zero out the payroll deduction category??

 

 

Neil_M

Hi @Jen65 

 

A journal entry certainly is one way of moving an amount from one account to another. If you were using a deduction to reduce an expense account then yes a journal entry would be the way to go. As to how the journal entry should look, I recommend discussing it with your accountant. They will be able to advise you of how the journal entry should look and which accounts to use