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Anonymous
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Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll company?

 
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Best answer 06-24-2019

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Anonymous
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Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll company?

Details:

 

Company expenses being paid by personal credit cards by owners and workers.

Using ‘Receipts” part of QBO to keep our Receipts stored, create expenses and attach those receipts to that expense as my first step.

Receive Reimbursement Reports (with Receipts I will add individually as I think I have to to stay in process correctly)

That Reimbursement is being paid via payroll with outside payroll company and comes in as bank Feed ADP PAYROLL

 

I could use step by step if possible and the explanation behind it, Please?!

We will eventually be setting up General Ledger with ADP RUN so it can flow in broken down better (from my understanding... not using it yet)

View solution in original post

Highlighted
QuickBooks Team

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

Thank you for providing me with all the details about your concern, @Anonymous.

 

You’ll need to create a wash account to track the payment of the business expense paid with your personal funds. Let me guide you how.

 

The wash account is a type of bank account wherein you use this to record your expenses. Then, you record a deposit for the payment for the personal funds.

 

To create a wash account, you can follow the steps below:

  1. Hover your mouse on Accounting from the left panel.
  2. Choose Chart of Accounts.
  3. Click on New.
  4. Choose Bank for the Account Type. You may choose any detail type you want for your clearing account.
  5. Type in the Name for the clearing account.
  6. Make sure you do not type in any amount on the balance.
  7. Click on Save and Close.

Once done, you can then record your expenses through the Wash account you created.

 

You can refer to this article for more steps: How to Pay for Business Expenses with Personal Funds?

 

Please let me know if you have any other questions or concerns. I’d be happy to help you.

View solution in original post

Anonymous
Not applicable

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

Thank you for reply!  I am not sure why a wash account, could you explain a bit more so I grasp how that plays out within system?

Secondary, the part I am most nervous about is how to handle the payroll reimbursing these and not a separate check to employee. I get how to break it out on payroll lump feed that comes thru, but not how to also use it as the payment to receipt expenses/reimbursements.

I am doing a 2 day training and hope this hps me a bit.

I do not have accounting degree and am trying to read and self teach.

Good w financed and have some accounting knowledge but get lost at times.

Thank you again!

View solution in original post

QuickBooks Team

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

Thank you for getting back to me, @Anonymous.

 

Instead of creating a journal entry to record the payment business expense, the wash account allows you to properly record your expenses in an accrual or cash basis of accounting.

 

Also, to reimburse your employee, you can either pay them now or record an expense and pay them later.

 

To pay your employees, you can record a Check or Expense. Here’s how:

  1. Click on the Plus (+) icon.
  2. Choose Check or Expense.
  3. Choose your employee as the Payee.
  4. Choose the expense account or the wash account for the purchase made by your employee.
  5. Enter the Payment Method and Amount.
  6. Click on Save and Close.

For further guidance, you can read this article about reimbursing your employees.

 

Please tag me in your comment if you have any other questions. I’ll be sure to get back to you.

View solution in original post

QuickBooks Team

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

Hello there, sicilianmissy6583.

 

Let me provide additional information on the process of recording receipts, expenses and reimbursements paid outside payroll company.

 

Clearing Account is an account you use to move money from one account to another. This account normally has a balance of $0.00 because you always take out the same amount that you put in.

 

You can create an Expense from the bank account posting to the Clearing Account.

  1. Go to Pus icon.
  2. Under Vendors, click Expense.
  3. Enter the necessary information.
  4. Under the Category details, apply the Clearing Account.
  5. Enter the amount
  6. Click Save and close.

Now, if you wish to pay the outside payroll company, you can Write the Check from the Clearing Account as for the posting account.

 

This will become the personal funds that will be posted on the owners equity.

 

Also, I'd love to share some of our great resources like video tutorials, articles and webinars to be more familiar with QBO's features and function:

Stay posted if you have any other QuickBooks questions with the whole process, I'll be right here to help you.

View solution in original post

Moderator

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

I have a way to match the payroll lump feed, sicilianmissy6583.

First, we have to record the transactions in QuickBooks Online.  Using the uploaded receipts, create them as expense transactions. Note that you can only assign one category from Receipts page. You may add the payroll expense for each employee on the receipts. This way, you'll have one transaction per employee on each pay period.  


I'll show you how to add a line item from your receipts: 

  1. From the left menu, select Banking.
  2. Click the For Review tab, then locate the receipt.
  3. Click Review, then enter the necessary information.
  4. Click Save and next, then click Create expense.
  5. Find the expense transaction. 
  6. From the Expense window, you can enter a new line item.
  7. Then, manually enter the amount.
  8. Click Save and close.

See attached screenshot:

 

You can also record employee's transactions separately. 

 

After recording the reimbursement and payroll transactions, you can proceed with matching the expense transactions. From the lump payroll feed, choose the Find Match option. Then you will be able to select all transactions included from the ADP payroll. 

 

I've added another screenshot for reference:

 

You may not need to create a wash account, you can enter the owner's credit card in QBO. Once the business has reimbursed these company expenses, you can record them as credit card payments.

 

If there's anything else that I can do to help, just leave a comment below. I'll be glad to help.

View solution in original post

9 Comments
Anonymous
Not applicable

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll company?

Details:

 

Company expenses being paid by personal credit cards by owners and workers.

Using ‘Receipts” part of QBO to keep our Receipts stored, create expenses and attach those receipts to that expense as my first step.

Receive Reimbursement Reports (with Receipts I will add individually as I think I have to to stay in process correctly)

That Reimbursement is being paid via payroll with outside payroll company and comes in as bank Feed ADP PAYROLL

 

I could use step by step if possible and the explanation behind it, Please?!

We will eventually be setting up General Ledger with ADP RUN so it can flow in broken down better (from my understanding... not using it yet)

View solution in original post

Highlighted
QuickBooks Team

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

Thank you for providing me with all the details about your concern, @Anonymous.

 

You’ll need to create a wash account to track the payment of the business expense paid with your personal funds. Let me guide you how.

 

The wash account is a type of bank account wherein you use this to record your expenses. Then, you record a deposit for the payment for the personal funds.

 

To create a wash account, you can follow the steps below:

  1. Hover your mouse on Accounting from the left panel.
  2. Choose Chart of Accounts.
  3. Click on New.
  4. Choose Bank for the Account Type. You may choose any detail type you want for your clearing account.
  5. Type in the Name for the clearing account.
  6. Make sure you do not type in any amount on the balance.
  7. Click on Save and Close.

Once done, you can then record your expenses through the Wash account you created.

 

You can refer to this article for more steps: How to Pay for Business Expenses with Personal Funds?

 

Please let me know if you have any other questions or concerns. I’d be happy to help you.

View solution in original post

Anonymous
Not applicable

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

Thank you for reply!  I am not sure why a wash account, could you explain a bit more so I grasp how that plays out within system?

Secondary, the part I am most nervous about is how to handle the payroll reimbursing these and not a separate check to employee. I get how to break it out on payroll lump feed that comes thru, but not how to also use it as the payment to receipt expenses/reimbursements.

I am doing a 2 day training and hope this hps me a bit.

I do not have accounting degree and am trying to read and self teach.

Good w financed and have some accounting knowledge but get lost at times.

Thank you again!

View solution in original post

QuickBooks Team

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

Thank you for getting back to me, @Anonymous.

 

Instead of creating a journal entry to record the payment business expense, the wash account allows you to properly record your expenses in an accrual or cash basis of accounting.

 

Also, to reimburse your employee, you can either pay them now or record an expense and pay them later.

 

To pay your employees, you can record a Check or Expense. Here’s how:

  1. Click on the Plus (+) icon.
  2. Choose Check or Expense.
  3. Choose your employee as the Payee.
  4. Choose the expense account or the wash account for the purchase made by your employee.
  5. Enter the Payment Method and Amount.
  6. Click on Save and Close.

For further guidance, you can read this article about reimbursing your employees.

 

Please tag me in your comment if you have any other questions. I’ll be sure to get back to you.

View solution in original post

Anonymous
Not applicable

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

I honestly am too new to QBO (going thru training with QB free stuff as best I can) to understand all this. I am not sure what a wash account is or how to code the payroll Reimbursements that come in (all lumped together with payroll bank feed from ADP - waiting on reports from owner to try and break those down, but getting lost on all this).
I also am not sure with what to do with the Receipts for these employee reimbursements. Can I upload them to QBO Receipts page then create the expense? However how do I pay them? With the payroll entry? If so, how?
They are doing things I have never seen done before and it is going to be a crap show very soon. So I am just letting them sit there until I can get help here, or he gets me access to his CPA.
Thank you Allesandra for your help.
QuickBooks Team

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

Hello there, sicilianmissy6583.

 

Let me provide additional information on the process of recording receipts, expenses and reimbursements paid outside payroll company.

 

Clearing Account is an account you use to move money from one account to another. This account normally has a balance of $0.00 because you always take out the same amount that you put in.

 

You can create an Expense from the bank account posting to the Clearing Account.

  1. Go to Pus icon.
  2. Under Vendors, click Expense.
  3. Enter the necessary information.
  4. Under the Category details, apply the Clearing Account.
  5. Enter the amount
  6. Click Save and close.

Now, if you wish to pay the outside payroll company, you can Write the Check from the Clearing Account as for the posting account.

 

This will become the personal funds that will be posted on the owners equity.

 

Also, I'd love to share some of our great resources like video tutorials, articles and webinars to be more familiar with QBO's features and function:

Stay posted if you have any other QuickBooks questions with the whole process, I'll be right here to help you.

View solution in original post

Anonymous
Not applicable

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

Alessandra and Charles,
I think what I keep trying to understand that none of these articles are helping me with is that the Reimbursement is on their payroll check issued by an outside (ADP) vendor. Different line item obviously, but still in the lump sum for the employee as well as it comes thru as a bank feed lump sum for entire payroll.
So, I am not sure which format to follow in all the above with it being tied to the payroll entry... or if I do 2 different steps.
Does this make sense to you as to what my confusion is?
If I pick check or Expense then how do I tie in the ADP payroll transaction or do I even do that?
Thanks for being so very helpful!

Dena

Moderator

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

I have a way to match the payroll lump feed, sicilianmissy6583.

First, we have to record the transactions in QuickBooks Online.  Using the uploaded receipts, create them as expense transactions. Note that you can only assign one category from Receipts page. You may add the payroll expense for each employee on the receipts. This way, you'll have one transaction per employee on each pay period.  


I'll show you how to add a line item from your receipts: 

  1. From the left menu, select Banking.
  2. Click the For Review tab, then locate the receipt.
  3. Click Review, then enter the necessary information.
  4. Click Save and next, then click Create expense.
  5. Find the expense transaction. 
  6. From the Expense window, you can enter a new line item.
  7. Then, manually enter the amount.
  8. Click Save and close.

See attached screenshot:

 

You can also record employee's transactions separately. 

 

After recording the reimbursement and payroll transactions, you can proceed with matching the expense transactions. From the lump payroll feed, choose the Find Match option. Then you will be able to select all transactions included from the ADP payroll. 

 

I've added another screenshot for reference:

 

You may not need to create a wash account, you can enter the owner's credit card in QBO. Once the business has reimbursed these company expenses, you can record them as credit card payments.

 

If there's anything else that I can do to help, just leave a comment below. I'll be glad to help.

View solution in original post

Anonymous
Not applicable

Re: Can anyone help with using Receipts , Expenses and Reimbursements paid via outside payroll co...

Thank you so much! I am going to go over this tomorrow. I really appreciate you help... All 3 of you really came thru for me. (Allessandra, Charles and yourself) It is nice to have support from this community when you are so new and a novice! Much Gratitude! Will try to tag Charles and Allessandra... :-)

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