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Level 1

IN: How do I record and track a cash advance to an employee for business expenses and adjust it later once he submits his expenses.

1 Comment
QuickBooks Team

Hi Shuvo Brahmachari, Please follow below steps to record...

Hi Shuvo Brahmachari,

Please follow below steps to record and track cash advance to employee.

1. Please create an 'salary' under expense and 'salary payable account' under liability.

2. Then create an expense and select 'Salary payable Account' to create a liability for cash advance payment. So that it will appear on your Balance Sheet

3. When you paid that expense please pass below journal entry.

Salary Expense A/C                                      Dr    xxxx

To Salary payable Account A/c                     Cr                    xxxx

Now, it expense will appear on Profit and Loss Account and Balance Sheet amount goes zero

Hope this helps.