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clubretreatvineet
April 4, 2022
Question

expenses payment from liability account

  • April 4, 2022
  • 1 reply
  • 0 views

some of the marketing personnel visit to various cities for marketing and promotion of business and sometimes the pay visiting expenses from their own pocket which becomes a liability to company to reimburse that amount. How can I record that expense in QBO using liability account of that employees as a payment account.

1 reply

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Giovann_G
April 4, 2022

Hello, clubretreatvineet.

 

It's nice to see you here in the Community space. I know a way to record expenses using the liability account in QuickBooks Online.

 

If your employees spend their funds on business-related expenses, you'll have two options to reimburse them. You can issue a check or expense transaction if you want to pay them immediately. Otherwise, you can create a journal entry if you wish to record the expense first and pay them later.

 

These are the steps using a Cheque or Expense:

 

  1. Click the + New icon.
  2. Select Cheque or Expense.
  3. Find the name of your employee in the Payee dropdown.
  4. In the Category column, select the liability account. You can create a new liability account if you don't have one.
  5. Enter the amount and necessary information.
  6. Once done, hit Save and close.

 

Here are the steps for Journal Entry:

 

  1. Select + New, then select Journal Entry.
  2. On the first line:
    1. Under Account, select your liability account.
    2. Under Credits, enter the amount you owe your employee.
    3. Select the Name ▼ dropdown and find the name of your employee.
  3. On the second line:
    1. Under Account, select the expense account that fits the purchase your employee made.
    2. Under Debits, enter the amount of purchase.
  4. Select Save and close.

 

For your reference, you can review this article: Reimburse an employee.

 

In addition, I've added this resource for future reference in case you need to track bills and record payments from your supplier: Enter bills and record bill payments in QuickBooks Online.

 

You're always welcome to reply if you have further questions about reimbursement. I'll be here to help you.

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