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summersummer
March 12, 2020
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Flight Ticket Refund to Employee's Airline Account

  • March 12, 2020
  • 2 replies
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Hi,

 

I have a question about this specific situation. One of our employees booked a flight for a business trip with a company business credit card, but the trip was cancelled because of covid19 situation. She asked a refund for flight tickets to the airline company, but got refunded not to our business credit card but to her airline account with store credit for future use(airline policy).

 

In this case, how we do process or record about this? Should we ask her to payback for the amount of her store credit on her airline accounts? Or just leave it as a travel expense even though it didn't happen? She will have another business trip in the future and she wants to use her credit for the next business trip. And this same situation may happen to other employees very soon, so I would appreciate if I get an advice from you guys!

 

Thank you and stay healthy!

 

Best answer by Rustler

@summersummer 

 

The expense you posted for the trip needs to be edited, change the expense account to an asset account you create called due from [name]

When the employee books the next flight using that flight credit do a journal entry
debit trip expense, credit the due from asset account

 

Since you were specific about not getting an actual refund, I'm not sure why @JasroV  said to deposit it in the business account

2 replies

JasroV
JasroV
March 12, 2020

It'll actually depend between you and your employee, @summersummer.

 

You can let your employee deposit the refund to your business account using her airline account. Or, enter a note in the description field of the travel expense that the employee will cover the next business trip in the future. Let me guide you how.

 

In your QuickBooks Online (QBO) account:

  1. Go to the Accounting menu.
  2. Select Chart of Accounts.
  3. Locate your Business account and click View register.
  4. Select the Expense transaction and click Edit. 
  5. Then enter a note in the DESCRIPTION field. 
  6. Once done, click Save.

In case you want more insights on how to better record this, I recommend reaching out to your accountant. Also, do check your Income and expenses page to learn some best practices on managing your expenses.

 

Then in case you need to reimburse your employee in the future, you can check this great article for the detailed steps: Reimburse an employee.

 

You're always welcome to post here anytime you have other concerns and questions in the future. Our door is always open to help. Take care and stay healthy!

    S
    summersummerAuthor
    April 8, 2020

    @JasroV Thank you so much and sorry for saying this late! Hope you stay safe!

    Rustler
    RustlerAnswer
    March 13, 2020

    @summersummer 

     

    The expense you posted for the trip needs to be edited, change the expense account to an asset account you create called due from [name]

    When the employee books the next flight using that flight credit do a journal entry
    debit trip expense, credit the due from asset account

     

    Since you were specific about not getting an actual refund, I'm not sure why @JasroV  said to deposit it in the business account

      S
      summersummerAuthor
      April 8, 2020

      @Rustler Thank you so much and sorry for the late response! Your explanation is very simple and direct, so I was able to figure out what to do :D

       

      Hope you stay safe and have a wonderful day!

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