cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Do you have a question about self-assessment or anything else? - Ask it here!
Tom Elliott
Level 1

Process Advance/Expenses/Refund

So in a nuthsell, we advanced an employee £1,000 for a big international trip, he only spent £200 and refunded us the unspent £800. However, how I process this through Quickbook has me really scratching my head - any ideas?

7 REPLIES 7
Ashleigh1
QuickBooks Team

Process Advance/Expenses/Refund

Hello Tom, 

 

Thanks for reaching out to us ion the Community page, 

 

In real life how did you give the 1000 pounds to the employee for the big international trip? 

 

 

Tom Elliott
Level 1

Process Advance/Expenses/Refund

Online transfer from our bank account to his, and the refund vice versa

John C
QuickBooks Team

Process Advance/Expenses/Refund

Hi Tom

 

Create an expense New+ > expense > create the employee from the Payee field, ensure you select employee in the type field > enter all the relevant data > in the category field either create/add new a specific expense account or use a relevant default one.

For the refund create a bank deposit, New+ > Bank deposit > ensure you select the date and account that the money was received > in the 'Add funds to this deposit' and the employee in the received from field > in the account field enter the expense account you used in the initial expense |> enter the amount > No VAT > sane and close.

 

The above is based on the assumption that the amount was not processed through payroll/PAYE.

Tom Elliott
Level 1

Process Advance/Expenses/Refund

What about the £1,000 advance?

John C
QuickBooks Team

Process Advance/Expenses/Refund

Hi Tom

 

Create the Expense as explained in the previous post, this relates to the £1000 that you gave to your employee from your bank account.

The deposit, relates to the amount that your employee sent back to you, we presume he sent that via your bank?

Tom Elliott
Level 1

Process Advance/Expenses/Refund

But isn't the £200 he spent the actual expense? Of which we then overpaid him with £1000, which he refunded £200 of?

John C
QuickBooks Team

Process Advance/Expenses/Refund

Hi Tom

 

Yes, sorry, create the £1000 expense and then create the deposit  relating to £800. The £200 will be allocated/showing as an expense to the expense account you chose/created.

 

Need to get in touch?

Contact us