Record supplier invoice payment when paid by employee

Snelly · ‎April 05, 2021

Does anyone know how to record a supplier invoice payment which has been paid by an employee via their credit card?

So, the employee has paid for a shipping courier's invoice with their personal credit card.

We have the invoice logged into QB and need to track the VAT, which is quite large, so I need to show that the company has paid the VAT in order to reclaim it.

How do I pay my employee back for the total amount paid out and also show the supplier invoice is paid?

TIA

emmam6 · ‎April 05, 2023

Hello Community Users, We just wanted to stop by add a comment to this thread on recording payments with money loaned to the business.

1.You would need to set up a chart of account to record the loan from the employee assuming it is a one off and to be paid back within 12 months you can set up a liability chart of account for the loan amount. Select chart of accounts>new > account type>current liabilities>detail type(select the closest one) save and close.

2. Then you would need to create a journal.+ new in the top left>journal entry> line one in the debit column select the creditors account>in the name put in the suppliers name and amount of the bill(in this case the amount loaned) On line 2 select the credits column and find the loan account and it will pre fill the amount. Save and close.

3.Then go to the bill you have created for the transaction>select make payment. tick the journal entry. Save and close

This will then close off the bill as paid and show in the loan that you have a liability for the amount your employee paid.

4.When you pay the money back you can record an expense from the bank in the payment account and in the line of the expense select the loan as being the category. This will decrease the loan and match the amount paid out of your bank. We'd recommend speaking with an accountant if you're unsure about using journals.

NOTE If you have had a physical loan where money has gone into your bank the process would be slightly different. Any questions just ask.

View solution in original post

ShiellaGraceA · ‎April 05, 2021

Thanks for reaching out to us here today, @Snelly.

I'll share some information about how you can pay your employee from a business bank account. First, record the supplier's bill payment by going to +New and then Pay bills. This will mark the supplier's invoice as paid.

Then, create a journal entry to record the business expense paid by your employee. It is best to consult your accountant to make sure you Debit and Credit the correct account.

After creating a journal entry, you can reimburse your employee by creating a cheque. Here's how:

Go to +New.
Select Cheque.
Choose a bank account to use to reimburse personal funds. Make sure to pick the correct account in the Category column.
Enter the Amount to reimburse.
Click Save and close.

Here's an article that you can use as your reference: Pay for business expenses with personal funds.

I've also added this link here in case you need help with other tasks in QBO. It has topics with articles that'll guide you along the way.

Keep me posted if you have other questions or concerns with the supplier's transaction or employee refund. I'll be around to assist you further. Take care and have a great rest of the week.

Snelly · ‎April 11, 2021

I'm not sure I follow this completely.

Step 1 is to mark the invoice as being paid, but what account to I pay it with - checking?

Step 2 journal entry to debit that account but then which account do I credit?

Step 3 pay the employee to reimburse - that is straight forward, from our checking account.

emmam6 · ‎April 05, 2023

Hello Community Users, We just wanted to stop by add a comment to this thread on recording payments with money loaned to the business.

1.You would need to set up a chart of account to record the loan from the employee assuming it is a one off and to be paid back within 12 months you can set up a liability chart of account for the loan amount. Select chart of accounts>new > account type>current liabilities>detail type(select the closest one) save and close.

2. Then you would need to create a journal.+ new in the top left>journal entry> line one in the debit column select the creditors account>in the name put in the suppliers name and amount of the bill(in this case the amount loaned) On line 2 select the credits column and find the loan account and it will pre fill the amount. Save and close.

3.Then go to the bill you have created for the transaction>select make payment. tick the journal entry. Save and close

This will then close off the bill as paid and show in the loan that you have a liability for the amount your employee paid.

4.When you pay the money back you can record an expense from the bank in the payment account and in the line of the expense select the loan as being the category. This will decrease the loan and match the amount paid out of your bank. We'd recommend speaking with an accountant if you're unsure about using journals.

NOTE If you have had a physical loan where money has gone into your bank the process would be slightly different. Any questions just ask.

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Record supplier invoice payment when paid by employee