Receiving reimbursements / repayments

Question

Hi,At times our staff may accidentally use their work card for personal expenses, and they pack back the money. Other times we may pay for more expensive travel and the traveller will pay us the difference. Currently we've been recording the amount to be repaid in a dedicated job as an exepense, and then recording the repayment as income.&nbsp;I spoke to our accountant who recommended that instead we use a clearing account; so that repayments are not recorded as income, and to record them as NT. Can I get clarification on&nbsp;how to do this? And if it is a partial reimbursement, do we only record the GST of the amount we are covering?Thanks.

princess_r · Answer

Hi MishPony,
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Thank you for your post.
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Apologies for the delayed response. To handle repayments for personal expenses or differences in travel expenses without recording them as income, you can use a clearing account that allows you to track the flow of funds in and out of this account. Create a new account in your chart of accounts. To do this, please refer to this Help article: Set up accounts.
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You can then record the expense in the clearing account as an expense. Then record the repayment transaction as a transfer from the clearing account to the actual expense account. Please note that this is a general guide and may not cover all specific scenarios. Always consult with your accountant or a financial advisor for advice tailored to your situation.
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I hope this helps! Please let me know if you need further assistance.
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Cheers,
Princess

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