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AJM0517
Level 3

Employee advances and classes without using payroll

Hello,

We have to give our field staff cash to take out to make purchases and at the moment we record them by doing a journal that is Dr Petty Cash Staff Advances Cr Petty Cash or Cash at Bank.  When they bring the money back, we create an expense (making sure the money is taken from the petty cash staff advances account) and any surplus goes back to petty cash or cash at bank.

 

Is there a better way to do this?  We have to use classes - this is really important to us - and we prefer not to do journals as we like to keep journals for non-regular transactions.  

Thanks

Solved
Best answer May 27, 2021

Best Answers
amitmundhra
Level 2

Employee advances and classes without using payroll

Hi

 

An alternative to this can be the following.

 

1. Create "Employee Name (Expense Reiumbursement) A/c" as a Vendor

2. At the time of paying the employee you can create a "Vendor Advance Payment"

3. At the time of receipt of expenses from employees, you can create a Bill to book the expenses. You may also attach the vouchers submitted by the employee in QuickBooks

4. Record payment of this bill using "Advance Credits"

5. If employees gives any cash back, you can create Vendor Refund for this.

 

I hope this may solve your issue.

View solution in original post

3 Comments 3
RCV
QuickBooks Team
QuickBooks Team

Employee advances and classes without using payroll

Thanks for checking in with us, AJM0517.

 

I appreciate you for coming up with the workaround to record the employee advances and classes without using payroll. However, this is the option we need to perform since we are not using our payroll service. Just in case you'll turn on payroll on your account, we can set up Payroll Cash Advance to create a payroll deduction to pay back the advance. Let me walk you through the process:

  1. Go to the Gear icon.
  2. Select Payroll Settings.
  3. Click Deductions/Contributions under Payroll.
  4. Tap Add a new Deduction/Contribution.
  5. Choose Other deductions for the Category.
  6. Select Cash Advance Repayment for the Type.
  7. Enter a name in the Description field.
  8. Press OK.

 

If this option does not apply to your business, I'd suggest consulting your accountant. They'll help you with other ways on how to handle this one in QuickBooks Online (QBO). Visit our QuickBooks Help Articles page for more insight s about managing your business in your software.

 

I'm just one post away if you need a hand with modifying reports or any QBO related. I'll be here to ensure your success. You have a good one. 

amitmundhra
Level 2

Employee advances and classes without using payroll

Hi

 

An alternative to this can be the following.

 

1. Create "Employee Name (Expense Reiumbursement) A/c" as a Vendor

2. At the time of paying the employee you can create a "Vendor Advance Payment"

3. At the time of receipt of expenses from employees, you can create a Bill to book the expenses. You may also attach the vouchers submitted by the employee in QuickBooks

4. Record payment of this bill using "Advance Credits"

5. If employees gives any cash back, you can create Vendor Refund for this.

 

I hope this may solve your issue.

View solution in original post

AJM0517
Level 3

Employee advances and classes without using payroll

Thank you - I will look at this option in more detail.   Much appreciate your input. 

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