QB Issue Resolution:
Let’s get to reimbursing employees! It’s generally easier and better to record reimbursing your employee separate from a paycheck, so that way they don’t have to worry about that being counted as income come tax time. Don’t worry though, I’ve got a whole process you can follow step by step every time an employee picks something up for your business. It’s easy! The whole process is dictated by if you’d like to pay the employee back right now, or if you’d like to record the expense for future payment. Here’s how!
To pay the employee now:
Start by clicking the Create (+) and choose Check or Expense from the dropdown.
For the payee, we’re going to choose the employee. No need to make them a vendor; we can definitely create regular checks or expenses for employees, too!
We’re going to fill in the various fields as needed. For Account, this will be the expense account appropriate for the purchase made by the employee. The Amount will be the amount the employee paid out of pocket.
When you’re ready, click Save and Close.
That’s it if you just want to pay them back right away! But what if you want to pay them later, like to coincide with a pay period? We can do that too! Here’s how.
To record the expense for future payment:
Click the Create (+) at the top of your Home screen and choose Journal Entry.
For the first distribution line, we’re going to want to make the Account whichever account you use to track the employee reimbursements owed. If you don’t have one, it’s really easy to click in the dropdown and choose “Add New” to create a new liability account for these reimbursements. In the Credit column, we’re going to enter the amount owed to that employee. Finally, in the Name field, we’re going to enter that employee’s name.
On the second distribution line, in the Account column, we’re going to use the expense account appropriate for the purchase. In the Debit column, we’ll enter the amount of the purchase. If you’d like this expense associated with a customer, we can enter their name in the Name column.
When you’re all set, just click Save and Close.
To see how much you owe the employee, we can create this report:
Start by clicking Reports on the left hand side of your screen and, in the search bar that appears, begin to type the word “transaction.” We should then be able to choose the Transaction Detail by Account report from the dropdown.
Click Customize in the upper left corner.
In the General section, verify the Transaction Date range includes the journal entries you’ve made above.
In the Rows/Columns section, find the Group By field and select Employee.
Click Change Columns. Select Employee from the left column and click Add >. Then click OK.
From the left menu bar select Lists, find the Distribution Account field and select your Employee Reimbursement liability account.
In the Employee field, select the employee’s name. (If you want the report to show what you owe all employees, leave this set to All.)
Click Run Report.
When you’re all ready to pay the employee back:
Click the Create (+) at the top of your Home screen and choose either Check or Expense from the dropdown.
For the payee, we’re going to choose that employee. Again, they should be available from the list, even if they aren’t a vendor.
For the Bank Account at the top of the screen, we’re going to choose the account where we’re reimbursing the employee from.
For Amount, we’re going to enter in the amount we gave to the employee. In the Account column in the lower part of the screen, we’re going to use that Employee Reimbursement account we used on the Journal Entry. For Customer, we’re going to leave that blank, even if you included a name for a customer on the Journal Entry.
When you’re satisfied with what you see, click Save and Close.
Resolution for Issue 'How to reimburse employee and do book keeping in quickbooks online?' available: Yes (Solved).
Source: Intuit Community forum.
How to reimburse employee and do book keeping in quickbooks online?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for Direct Deposit
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