How do I manage an owner-employee making a reimbursement of a personal expense charged to the company? I am guessing that I code the expense to a catagory for such purpose but want to make sure I don't goof up the accounting. Thanks! Bob-CLE
I'll presume a credit card charge. In Quickbooks - When the charges for the month are entered the personal charge is entered to an account called Owner Draws which is usually already in the chart of accounts. It can also be entered as Employee Advance, an A/R account. It will go into this alternate account instead of an expense account.
Alternately you can code it to an Expense Other acct. which shows up below the body of your P & L Reports - keeping the amount due in sight until it's reversed by payment. When it goes into the bank deposit, code it to the same account and it will reverse, leaving that account at zero. Until it is paid it will show up and never get erroneously included in your expense reports for the business.
