Is it possible to map the Expense Reimbursement pay code to a current liability account, rather than an expense account?
I tried adding a new Current Liability Account but when I went to map the code under Accounting Preferences, it seems to only show expense accounts.
Ideally, I wanted to be able see 'at a glance' if we had any reimbursements due, basically creating an expense reimbursement clearing account.
Is this possible?
QuickBooks Online is the best tool to make the most of your business bookkeeping. It sounds like you're using Payroll with QBO as well, which is an awesome way to streamline your accounting tasks. I'll explain the options and limitations when it comes to account mapping in QBO.
Whether you're using Standard or Advanced Payroll, the account options available to you will be programmed based on the product's limitations. If you're only seeing expense accounts when mapping the Expense Reimbursement pay code, those are the only options available.
If you'd like to move these transactions into a different account after you run payroll, you'll have to do this via a Journal Entry. Here's how to create a Journal Entry in QBO: Create a journal entry in QuickBooks Online. This article includes a helpful video tutorial that will make this process simple and straightforward.
I'd recommend consulting with an accountant before creating a Journal Entry to make sure everything is being recorded correctly. If you're not already connected to an accountant, you can find one in your area here: Find a ProAdvisor.
I hope this helps you get back on the right track. If you have any other questions or need any further assistance, please reach out to our tech support team.
Have a great day.
Unfortunately, there is no way to change this to a liability account, as QBO has not provided anything other than expense accounts in the available account list, as you have discovered.
This is really silly, because an expense reimbursement to an employee is not an expense at all. It is a liability, and should be treated as such. We should be able to initially post the expense to the company and liability to the employee and then clear the liability when the payroll reimbursement happens.
The only workaround would be to create your current liability account anyways, do the initial posting to debit the expense and credit the liability, then after you've done payroll and used the Reimbursement item, create a JE to credit the Reimbursement expense acct created by QBO and debit the employee liability that you created. If your reimburseable expense and your reimbursement to the employee are occurring in the same period, it probably wouldn't even be worth doing this, as the amount will go in and out of the reimbursement expense account. But, suppose the expense is incurred in one period and the reimbursement in another, this would be the only way to have an accurate account of the liability owed to the employee at the end of the period.
Intuit? Another QBO accounting foible here . . . .
Hi there @Lara Barrios. Thanks for joining in on this thread. I can see how being able to map your Expense Reimbursement to a liability account would be useful. Since it's not a feature that's available in QuickBooks Online Payroll, I suggest sending your feedback in-product. By navigating to the Gear icon, you can select Feedback, and have your say. These messages go directly to our product development team, and while they won't get back to you, these suggestions are important for them in implementing future updates and improvements. We love when our users have their voices heard in this way. I'll be sure to pass along the feedback on my end again, and I invite you to reach out again here in the Community if you come across anything else I can can help with. Enjoy your weekend!