Employee Reimbursement through payroll

Hi Chellie,

It looks like you may have done the journal backwards, if you already claimed the expense in the payrun this is a DR expense, in the Journal you have also Debited the expense. To take it out you need to put it as a Credit, but the question is why are you wanting to put it in as a liability in the payslip? If you put it as a liability, and then you make the payment then you will never claim the expense as you will be paying off that liability so this won't count as a deduction.

So...

Are you using a wage pay item or a deduction pay item? If deduction then you may also need to create a wage pay item to record both the expense & the liability.

If it all seems to complicated and If your paying it at a later date then instead of putting it into payroll I would create a bill and pay them as a supplier that is much easier as it doesn't need to be reporting as an STP and won't show up on their tax returns.

If you need further help you can contact me at www.clientsneeds.com.au 

Thanks for your response.  I knew it would be simple.  So initially in payroll for any employee reimbursements, done it was an expense account.  i was advised to change that to a liability account.    
its not a deduction its a reimbursement (paying them back for what they have spent of their own $).

Its already happened through out March in each week's payrun as a employee reimbursement through payroll.

i need to enter the receipts as a spend money to record on our end.

we don't want to be doing random supplier payment runs, so we include in the payroll.  Its not reportable or taxable.

question is in payroll should it be expense or liability. 

do i delete the journal ?

Both. I would use the "expenses" pay item and create a new one, you can then allocate both an expense and a liability code to this pay item, It will work similar to the super.