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N
neiw
October 28, 2022
Question

What is the correct way to process Payroll reimbursement to a separate company/entity inside QB Desktop?

  • October 28, 2022
  • 1 reply
  • 0 views

Hello. I own a property management company, and recently we came into an opportunity to manage a large complex for an investor. The apartment complex has numerous on-site staff that we absorbed into our business, and those employees are paid out of our payroll and receive full employee benefits.

In turn, we receive a management fee and bill the overhead back to the investment entity. 

 

What is the best way to go about billing the payroll back to that entity? I have created a class for those employees in the Employee Center and can generate reports based off of that data as a basis for the payroll "invoice" but I cannot bill a COGS line item - which is what I interpret the charge to be: a cost of goods sold. Should I just create an item in my Item list titled "____ Payroll Reimbursement" and classify it as Other Charge?

 

Perhaps this is an accounting question, but any insight would be greatly appreciated.

1 reply

C
CharleneMaeF
October 28, 2022

Yes, you're right, neiw. 

 

We'll have to create an item for reimbursement. Here's how:

 

  1. Go to List and then select Item List.
  2. Click the Item button, then select New.
  3. Select Other Charge.
  4. Add the necessary details to complete the item.
  5. Choose an account to track the money for reimbursements.
  6. Click OK.

 

To ensure the correct account is selected, I recommend consulting an accountant.

 

Once done, you can now create an invoice to track the reimbursement.

 

Additionally, I've added an article that'll help you keep track of employee expenses: Run Payroll Report.

 

Please fill me in if you have further concerns about creating a reimbursement. I'll be around to help you always. Stay safe!

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