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? 

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

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.

What about the £1,000 advance?

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?

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

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.