The payback process permits employers to reimburse the amount to the employee who spent their funds for the business-related operations. This type of payment does not recognize as income or wages. These reimbursable processes usually take place in an organization when their staff travels for work, or some other work-related purchases, supplies, or products. This topic will discuss on how to record or payback business-related expenses in QuickBooks Online.
Reimburse Payment with QuickBooks:
The employee Transportation cost, supplies, and meals expenses occur for business purpose. They need to submit the record of such transactions to their respective company. The company reimburses this payment back to their employee. This task of recording pay-back expenses can be easily performed in QuickBooks. This information is deliberately explained in this article.
There present some methods to reimburse an employee if he has used his investment for business objectives. The method you select to payback money is based upon the chosen agreement. You can initially record the expenses and pay back them later. For reimbursements, the supplier setup is a must so that you can integrate a bill for the payment.
How to reimburse employee payment in QuickBooks?
Follow the steps:
- Navigate New
- Choose Expense or Cheque
- Select the drop-down named Payee and search out the preferred employee
- Choose the drop-down which says Category and choose a liability account. In case you have no liability account then it is recommended to add a new account
- Fill the required information including Amount, customer, and billable
- Amount: This specifies the amount spent on your employee. Through this section, you can even break down the amount into various items so that multiple customers can track the bill.
- Billable: This field is optional. Through this field, you can easily offset the expense.
- Customer: This is also an optional field like billable, you can choose a customer from the drop-down option to monitor the expense of a particular customer (These two fields named customer and billable are not present in QuickBooks online simple start, however you can enable and use the feature in QuickBooks online plus).
- Apply changes, save them and then close it.
Expenses Recording for future objectives:
- Discover Create button and then choose Journal Entry
- Locate the first line and perform the following:
- Below Account, choose liability account
- Under the credits option, write the amount that you spent your employee
- Choose the drop-down named Name and search out specific employee you need
- Now locate the second line and perform the below-given:
- Choose the expense account suitable to employee purchase below Account
- Below the Debits, write the purchase amount and then choose Save and close window
- Records journal entry and after that, you can perform payment through the expense or a cheque.
Check the Employee Reimbursements Status:
If you have not completed employee reimbursement, then execute a Transaction detail report to monitor amount you have still left to pay them.
To check it follows the below-given steps:
- Navigate reports icon and then find out Transaction Detail through Account
- View the report and then choose the customize located at the top of it
- Discover the General Section, choose the drop-down named Report period and then select the transaction range
- Locate row-columns category, choose the drop-down named Group By and then choose Employee
- Discover the filter section, choose the drop-down which says Distribution Account, then select Reimbursement account
- Click on drop-down named Employee and then search for employee name you want to monitor the status
- In case you want a full-detailed report that contains the payback expenses of entire employees, then set to All
- Choose Run report.
Be in Touch with QuickBooks Experts for advice:
The above guidance is enough to know how to record or payback business-related expenses in QuickBooks Online. If you stuck somewhere or face any problem while attempting to figure out certain errors or need any further assistance, just dial QuickBooks technical support number +1800-865-4183. The professional provide 24-hour active services to address all your queries. Meanwhile, you do live chat or send an email with queries at the email address email@example.com. The professionals are carrying experience in the same domain, are capable of resolving your issues.