Hello! Can anyone make clear how I should handle the following? We billed an employee for his portions of the company phone bills already paid for 2021. Now the employee is going to have his phone balance due deducted from his paychecks evenly over the next four paychecks. I set up a payroll deduction to "phone expense", but I am not sure about that. To which account do I post the deduction to since we already paid the vendor and no company liability is in the system?
EX: Phone Vendor Bill $1350 - we paid with check, $1350
Billed employee $350 to "Reimbursable Phone Expense" (sub of phone expense)
Currently deducted 1st $350 payment from employee check - which account do we choose as the "liability account" in the deduction setup? We chose "reimbursable phone expense" for now.
Received payment under invoices for the employee, which zeroed out the account receivable and shows a deposit of $350, which is not a tangible deposit.
Do we make a journal entry crediting our checking account for this deposit and debit the phone expense account to zero it out, or do we need to set up the paycheck deduction to a different account?
Thank you!
We pay our company phone bill outright to the vendor (never entering as a bill - just a check)
