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AKUK
Level 3

Director paid for business expense on personal card, how do I reimburse correctly?

I have tried following a guide and reading other posts but not cracked this yet. I (the director) paid for an item using my personal card by mistake, I have the VAT invoice for the item. When I create a new expense and select directors loan in the category it acts as if I have borrowed money from the company rather than the other way round and I cannot enter a negative figure. 

 

Ideally I would be able to create an expense and have that sum taken off of my negative directors loan balance. Does anyone know how to accomplish this? 

 

Thanks

Solved
Best answer June 02, 2021

Accepted Solutions
John C
QuickBooks Team

Director paid for business expense on personal card, how do I reimburse correctly?

Hi AKUK We presume that you have created the the directors loan account as a liability account.If so you would first have to account for the initial purchase by the director by creating a journal entry. On line one of the journal enter the expense account that the purchase relates to in the account column and enter the amount in the debit column. On line two enter the Liability account in the account column and then enter the amount in the credit column. When you pay the director back the amount that they have spent you will create an expense and in the category column enter the liability account and ensure that the date and the payment account are correct.

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2 REPLIES 2
John C
QuickBooks Team

Director paid for business expense on personal card, how do I reimburse correctly?

Hi AKUK We presume that you have created the the directors loan account as a liability account.If so you would first have to account for the initial purchase by the director by creating a journal entry. On line one of the journal enter the expense account that the purchase relates to in the account column and enter the amount in the debit column. On line two enter the Liability account in the account column and then enter the amount in the credit column. When you pay the director back the amount that they have spent you will create an expense and in the category column enter the liability account and ensure that the date and the payment account are correct.

View solution in original post

AKUK
Level 3

Director paid for business expense on personal card, how do I reimburse correctly?

Thanks John, that seems to have worked. I tend to have a small negative balance in my directors loan throughout the year then I repay it in full at the end of the year so I assume the final expense transaction you mentioned is not required in my case? 

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