Hi all,
Long-time lurker, first-time poster. I recently got hired with an accounting firm that is utilizing Quickbooks Desktop a little differently than probably most companies (certainly a lot different than my previous employer). Sidenote: while I'm generally proficient with QB, I'm far from an expert.
The firm does not utilize the payroll function of QB whatsoever. We use it to write checks, record bank deposits, and record journal entries for payroll and other miscellaneous transactions.
There is an employee who has been receiving payroll advances for several months now. An "other current asset" sub-account was created and, twice per month, a check has been written to the employee, with the sub-account I mentioned being used as an offset.
Now it's time for the employee to repay the advances, and I'm not sure how to process the transactions. The repayments are being withheld from the employee's checks (the firm utilizes a third-party payroll processing company), so there's not going to be any sort of deposit record on the bank account, so I can't record the repayments as a deposit.
We use general journal entries to process payroll, debiting a variety of sub-accounts and crediting a general payroll clearing account at the end. A journal entry debiting the payroll clearing account and crediting the advance sub-account is the only thing I can think of...
Any advice anyone has would be appreciated!
