VAT in Payroll Clearing Account

Hi, UKWMMG_Phil.

I'm here to share more information about reimbursing employees.

When reimbursing employees, yes, you're correct to create an expense transaction. Keep in mind that to ensure the VAT is cleared, you may use a liability account. 

Here's how to reimburse an employee:

1. From the + New tab, select Cheque or Expense.
2. On the Payee field, select the employee's name.
3. On the Category drop-down, select a liability account.
4. Enter the necessary information.
5. Click Save and close.

However, I'd still recommend reaching out to your accountant so they can guide you accordingly on the proper way to claim the VAT on one of the expenses.

Furthermore, you can run the Transaction Detail by Account report to check your employee reimbursement. Below are the steps to do so.

1. Click the Reports tab.
2. Enter and select Transaction Detail by Account.
3. Click Customise.
4. In the Rows/Columns section, select the Group By dropdown, then Employee.
5. In the Filter section, select the Distribution Account. Then, select the liability account.
6. Select the employee's name on the Employee drop-down.
7. Click Run report.

Keep me posted if you have other concerns about reimbursing employees.