Question

Recording expenses

Forum|Forum|3 years ago
July 6, 2023
2 replies
17 views

Hi

Our team purchased all its members uniforms and tshirts using the team account. the parents have started to pay the team back directly. there was no additional charge and the team doesn't make any money from the transaction. the parents are just reimbursing the team. can you tell me how I should record the original purchase and how to record the money coming back in as reimbursement and not income? thank you

QuickBooks Online

Rustler

Level 15

book the purchase and use the expense account you have for uniforms etc

deposit the repayments and use Other Income as the source account for the deposit

on the P&L, income is reduced by expense, so if the repayment is the same amount it will net to zero

S

stuetyAuthor

thank you!

L

LeizylM

QuickBooks Team

You can record your personal expenses paid using your business accounts or credit cards in QuickBooks Online (QBO), stuety. I'll gladly share more about this and guide you through the recording process below:

1. Go to +New and select Check or Expense.

2. Select a Payee from the dropdown ▼ menu. Choose the Bank Account, Cash Account, or Credit Card you used to make the purchase.

3. Choose the appropriate tax category by clicking on the dropdown menu ▼ in the Category details section.

4. Enter the amount of the purchase.

5. Once done, click Save and Close or Save and New.

You can read these resources to learn more about handling personal expenses in a business account: Pay for personal expenses from a business credit card or bank account in QuickBooks Online.

I'll be around if you need anything else with QuickBooks, especially with recording transactions. Take care and have a good one.

S

stuetyAuthor

thank you for your response. It's not really a personal expense. the purchase was for team uniforms and the parent will reimburse the team. we do not uncharge for this service. it's just money in and money out. can you tell me how this purchase and reimbursement would be done? thanks

Rubielyn_J

Level 8

Hi there! Allow me to guide you through the process of handling this purchase and reimbursement in a seamless and accurate manner.

The first thing we need to do is to create a purchase transaction. Then, choose the appropriate expense account that aligns with team expenses or uniforms. This ensures accurate tracking of the expense.

After that, assign the expense to a Reimbursable Expense account. Then, record and deposit the payment for the team uniforms using the Other Income account.

An alternative approach to track the inflow and outflow of funds is by employing a Journal Entry. It is important to note that this method should be used with confidence or under the guidance of your accountant.

I'm also adding these articles for you to read and have a deeper understanding of how to manage expense transactions in QuickBooks:

If you require additional assistance with tracking your expenses, simply click the Reply button and leave a comment. I'll promptly respond to provide the necessary support. Wishing you a pleasant day!

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