Pay and cash purchases

Hi KGrove 

With the employee that you deducted a portion of their pay from you would use the deduction category and enter the desired amount that was actually paid to the employee. For example, you deducted $50 you would enter "-50.00" against that deduction category to reduce the net pay by that amount. Note: You may want to discuss with an accountant as to the accounts involved in that process.

With respect to paying off the cash purchases account, you would only enter "-700.00" against that deduction category. This is going to put $700 in the holding account to which you can process through to the required account by the way of a journal entry or another transaction. In addition to that, the Net Pay would be $300 to which you can pay to the employee.