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Allocating employee reimbursement to expense accounts

We use QuickBooks Online with full service payroll. For each of my employees, I have setup the "additional pay type" for reimbursement, which allows me to enter a total reimbursement amount for each employee each time I run payroll.


The problem is that all of these employee reimbursement dollars are automatically allocated to a single expense account in QBO, called "Reimbursements" by default. I would like to allocate these reimbursement to several existing expense accounts, such as Travel:Transportation, Travel:Lodging, Travel:Meals, Travel:Mileage, Supplies, etc. What is the best way to do this? Is there a best practice? 

 

Unless there is an easier way that I am missing, I see two possible routes: 

 

1) Continue allowing QBO to automatically allocate all employee reimbursements to the "Reimbursement" account. Then, once per month or so, I can go in an use a general journal entry to re-allocate these reimbursements to their proper expense accounts. This option would keep my employee reimbursement request forms simple and running payroll simple, but it would require me to go back and dig through all employee reimbursement requests each month to categorize all reimbursements. 

 

2) Create even more "additional pay types" for each reimbursement category. This would provide extra boxes for me to enter numbers at each running of payroll, where I could enter reimbursements by category directly from the start. In this method, I could redesign my employee reimbursement forms to have employee list expenses by category themselves. I could then enter these numbers each pay period and avoid the monthly reconciling. 

Solved
Best answer 06-22-2019

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QuickBooks Team

Re: Allocating employee reimbursement to expense accounts

You're on the right track, @kevinwolz!

 

You can add a multiple reimbursement pay type to an employee and allocate a specific account on it. I can walk you through on how to set this up.

 

First, let's add the reimbursement type to each employee.

  1. Go to the Employees  or Workers menu.
  2. Choose the Employees tab.
  3. Double-click on each employee's name to edit its pay information.
  4. Click the Pencil Icon beside Pay column.
  5. Under How much do you pay Employee? section, click the Pencil Icon.
  6. Click the Add Reimbursed Pay Type link under Even more ways to pay Employee section.
  7. Once added, ensure to put a check mark on all the reimbursement pay types applicable to your employees. 
  8. Repeat the same process to all employees.

You can check this article for more detailed information: Create a reimbursement pay type in Online Payroll.

 

Once completed, assign a specific expense account to each reimbursement pay type. Here’s how:

  1. Go to the Gear Icon.
  2. Choose Payroll Settings.
  3. Select the Preferences tab.
  4. Click Accounting Preferences.
  5. In the Wage Expense Account section, choose I use different accounts for different wages.
  6. Look for the Reimbursement Pay types that you've set up earlier.
  7. Click the drop-down menu to choose the expense account for each payment type. 

For more detailed steps, you may refer to these articles:

Also, I've attached some articles for your reference in running payroll:

Swing by here in the Community if you have other questions. I'm just a few posts away.

View solution in original post

3 Comments
QuickBooks Team

Re: Allocating employee reimbursement to expense accounts

You're on the right track, @kevinwolz!

 

You can add a multiple reimbursement pay type to an employee and allocate a specific account on it. I can walk you through on how to set this up.

 

First, let's add the reimbursement type to each employee.

  1. Go to the Employees  or Workers menu.
  2. Choose the Employees tab.
  3. Double-click on each employee's name to edit its pay information.
  4. Click the Pencil Icon beside Pay column.
  5. Under How much do you pay Employee? section, click the Pencil Icon.
  6. Click the Add Reimbursed Pay Type link under Even more ways to pay Employee section.
  7. Once added, ensure to put a check mark on all the reimbursement pay types applicable to your employees. 
  8. Repeat the same process to all employees.

You can check this article for more detailed information: Create a reimbursement pay type in Online Payroll.

 

Once completed, assign a specific expense account to each reimbursement pay type. Here’s how:

  1. Go to the Gear Icon.
  2. Choose Payroll Settings.
  3. Select the Preferences tab.
  4. Click Accounting Preferences.
  5. In the Wage Expense Account section, choose I use different accounts for different wages.
  6. Look for the Reimbursement Pay types that you've set up earlier.
  7. Click the drop-down menu to choose the expense account for each payment type. 

For more detailed steps, you may refer to these articles:

Also, I've attached some articles for your reference in running payroll:

Swing by here in the Community if you have other questions. I'm just a few posts away.

View solution in original post

Not applicable

Re: Allocating employee reimbursement to expense accounts

I have the exact same question and followed the directions you laid out above with different results. When I click on the gear icon and then go to "Accounting Preferences" I don't see the new categories I created in "even more ways to pay my employee." Here are the more ways I pay my employee:

 

Untitled.png

 

This is what I see when opening Accounting Preferences. Any ideas why my new categories wouldn't show up?

 

 

Untitled.png

 

 

QuickBooks Team

Re: Allocating employee reimbursement to expense accounts

Hi there, @cdnblue.

 

Thanks for joining this thread. Looking at the screenshot of your accounting preference page, it seems like you missed to choose the I use different accounts for different wages in the Wage Expense Account section.

 

To resolve this issue, let's click the Customize button at the bottom. You can also click the Pencil icon in line with the Wage Expenses Account section. Then, click the box for I use different accounts for different wages

 

Once done, you'll be able to see the new categories you've added on the reimbursement section.

 

Don't hesitate to post again if you need further assistance. We're always glad to serve you. Cheers!

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