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DB78666
Level 1

Cash advances on credit card tabs

Hello,

 

We allow customers to get a cash advance on their credit card tab (for instance, to get quarters for the pool tables). This comes out of our petty cash, and is deposited back in with our credit card deposits daily. I am unsure how to categorize this correctly as they are not income or expense, but rather a reimbursement.

 

Thank you

2 Comments 2
Rustler
Level 15

Cash advances on credit card tabs

There are several ways to do it, this is one of them

 

create a liability account in the chart of accounts, called cash advance

 

post both withdrawals and paybacks to that account, the balance will be zero when you are paid back and it stays off the P&L

DB78666
Level 1

Cash advances on credit card tabs

Yes! That's perfect, thank you

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