I entered an employee travel advance into AP. Debit to Asset/Credit to AP.
Then I cut a check for that employee. Debit to AP/Credit to Cash.
Now I enter Travel Expense to AP. Debit to Expense/Credit to AP.
How do I now Debit AP/Credit Asset?????
are you doing all this via journal entries?
I entered the employee travel advance into AP (Accounts Payable Module).
I cut the check via Pay Bills (Accounts Payable Module).
I ented the Expense Report into AP (Accounts Payable Module).
I now need to 'pay' the expense reports but hit the asset account where the employee advance is sitting rather than the typical cash account.
seems to me to be a lot of extra work.
why not just write a check to your employee and charge it all to the appropriate expense account?
This company is required to follow GAAP (Generally Accepted Accounting Principles). I'm not able to go into financials after they've been submitted to various entities and change transactions just because it's easier for me. I'd really like to do it the easier way but alas... it's illegal. But thanks for your input :)
Is there anyone out there that has done this or knows how to do it?
I tried a bunch of things and this is what worked...
I entered the travel expense report as normal BUT WITH an extra line with a negative dollar amount coded directly to the asset account titled "Employee Advances".
So everything tics and ties and is in the correct month so I'm good with GAAP.
This is how I would do it:
Enter the travel advance to the employee as a debit to Prepaid Expenses and a credit to cash
When they submit the expense report just do a journal entry to the correct expenses and reduce the prepaid expenses account.
If they did not use the entire advance have them repay it closing out the prepaid expense account. If they needed more issue a second check to them hitting the additional expense accounts.
Journal entries do not allow for utilizing items for job costing. This had to be done through the accounts payable module
