Hi katsan32c,
This thread is joined by a mix of QuickBooks Online and QuickBooks Desktop users. So, we'll talk about the general process of recording expenses paid by an employee and reimbursing them. Please also have this reviewed by your accountant to make sure that your records are correct.
If your employee paid your vendor, you can track their payment as a loan to your business. Then, you can record the reimbursement, like how you paid them in actual.
Create a journal entry to track the loan:
- On the first line, you can choose the Other Current Liability account and enter the amount in the Credit column. I would suggest creating a liability account for this scenario.
- On the second line, choose the expense account that is associated with the item you paid to the vendor. Then, enter the amount in the Debit column. If there's a vendor bill, use the A/P account in this line instead. Then, tag the vendor's name, so this journal becomes a credit to their profile and can be applied as payment to the bill.
Reimburse the employee by writing them a check or recording an expense transaction, depending on how you paid them back. Choose your business account as the source of funds and select the Other Current Liability account in the Expense section.
After creating the transactions above, you'll see that the liability account will be zeroed out, the vendor is paid, and the employee is reimbursed.
Please don't hesitate to reach if you need to clarify certain steps.
