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Level 2

How to Post: Manager used personal credit card to pay for items on a Company Purchase Order

Our company uses QB Desktop.  The company does not have a credit card.  Instead, it allows management to use their personal credit cards for expenses and then reimburses them (when receipts are provided).  However, a manager has just paid for an order of inventory items currently ordered on a company Purchase Order and I need to know the following:  How do I record the payment of the vendor invoice for those items and then link the invoice to the manager's employee account so that I can reimburse the manager for the purchase?

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Best answer November 15, 2019

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Moderator

How to Post: Manager used personal credit card to pay for items on a Company Purchase Order

Hi there, @DA2018.

 

You can enter a check for the reimbursement, then use the Account's Payable account to link it with the vendor payment.

 

First, record the reimbursement as a check. Let me guide you how:

  1. From the Banking menu, select Write Checks
  2. Choose the bank account to reimburse the personal funds.
  3. Select the name of the employee in the PAY TO THE ORDER OF field. 
  4. Click the Expenses tab, and select the Accounts Payable account.
  5. Enter the amount and the vendor's name under the CUSTOMER:JOB column.
  6. Hit Save & Close.

Then, go to Pay Bills to record the vendor payment. 

 

Here's how:

  1. From the Vendors menu, select Pay Bills.
  2. Select the bill.
  3. Click Set Credits toward the bottom of the screen. The check to the employee should show up as a credit to offset the bill from the vendor.
  4. Select the check and hit Done
  5. Click Pay Selected Bills

For more reference, I've added some links you can use to track bill payments, apply a discount or credit, as well as how to pay bills online:

Don't hesitate to drop a reply below if need additional help in posting personal payment. I'll be happy to help you out. Have a great weekend. 

View solution in original post

5 Comments
Highlighted
Moderator

How to Post: Manager used personal credit card to pay for items on a Company Purchase Order

Hi there, @DA2018.

 

You can enter a check for the reimbursement, then use the Account's Payable account to link it with the vendor payment.

 

First, record the reimbursement as a check. Let me guide you how:

  1. From the Banking menu, select Write Checks
  2. Choose the bank account to reimburse the personal funds.
  3. Select the name of the employee in the PAY TO THE ORDER OF field. 
  4. Click the Expenses tab, and select the Accounts Payable account.
  5. Enter the amount and the vendor's name under the CUSTOMER:JOB column.
  6. Hit Save & Close.

Then, go to Pay Bills to record the vendor payment. 

 

Here's how:

  1. From the Vendors menu, select Pay Bills.
  2. Select the bill.
  3. Click Set Credits toward the bottom of the screen. The check to the employee should show up as a credit to offset the bill from the vendor.
  4. Select the check and hit Done
  5. Click Pay Selected Bills

For more reference, I've added some links you can use to track bill payments, apply a discount or credit, as well as how to pay bills online:

Don't hesitate to drop a reply below if need additional help in posting personal payment. I'll be happy to help you out. Have a great weekend. 

View solution in original post

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Level 1

How to Post: Manager used personal credit card to pay for items on a Company Purchase Order

Hi there,

 

The Customer: Job column only accepts the name of a Customer, not a Vendor.  Therefore the above does not work.  Please advise.  Many thanks

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QuickBooks Team

How to Post: Manager used personal credit card to pay for items on a Company Purchase Order

Good morning, @moutainstream.

 

Thanks for following the thread. 

 

To offer another suggestion here, you could treat this as an owner's equity account or loan account. The employee is essentially loaning the money and then paid back using a loan account or equity account. However, depending on what type of business you have (Sole proprietor, LLC, S corp, C corp, or a partnership) will be how you need to set these accounts up. 

 

Please note: It's always best to run these suggestions by your accountant to ensure this is the best course of action for you and your business. 

 

To see if an owner's equity account is best for you, check out the articles I've included below to understand the workflow. 

 

On the other hand, if you choose to set this up as a loan account, follow the steps I've included below. 

 

  1. Set up a liability account
    • Open your Chart of Accounts. 
    • In the lower-left corner, hit the Account drop-down and select New.
      •  
    • Choose Other account types and pick the right account type for your loan. 
    • Click Continue
    • Enter the name and number of the account. 
    • Hit Save & Close
  2. Add the employee's name to the Vendor list. 
  3. Set up an expense account in the Chart of Accounts.
  4. Record the loan amount.
    • From the Banking menu, choose Make Deposits
    • If the Payments to Deposit window pops up, hit Cancel
    • In the Make Deposits window: 
      • Select the account to deposit the loan into from the Deposit to field. 
      • Enter the date and memo. 
      • Choose the Liability account you created from the Account column. 
      • Enter the loan amount in the Amount column. 
      • Hit Save & Close.

See additional details outlined in Manually track loans in QuickBooks Desktop.  

 

Let me know if you have any questions or concerns. I'll be here every step of the way. You can reach out to the Community any time. Take care and enjoy the rest of your day! 

 

 

 

 

 

 

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Level 1

How to Post: Manager used personal credit card to pay for items on a Company Purchase Order

New to QB working in an Auto Restoration shop. The three owners are customers and vendors and also buy supplies out of their own pockets. I've used the above to reimburse the boss, add it to the customer's bill and and pay the vendor.

 

Current issue - Boss made a shop purchase on his CC and at this time he also has an outstanding invoice as a customer. So I need to enter the invoice, pay the invoice, bill the customer AND hopefully transfer a credit to the bosses invoice instead of reimbursing him.  It's convoluted but they do this a lot. 

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QuickBooks Team

How to Post: Manager used personal credit card to pay for items on a Company Purchase Order

Hello there, @MadJack11.

 

You can set up a clearing account in QuickBooks. This will move money from one account to another account and make sure not to enter any balance because you always take out the same amount that you put in.

 

To create a clearing account, here's how:

 

  1. From the Lists menu, select Chart of Accounts.
  2. Right-click anywhere in the Chart of Accounts, then select New.
  3. In the Add New Account window, select the Bank radio button.
  4. Select Continue.
  5. In the Account Name field, enter Clearing AccountBarter Account, or Wash Account.
  6. Do NOT enter an opening balance.
  7. Click Save & Close.

See this article for more detailed steps: Set up a clearing account.

 

Once done, use the clearing account in making a payment to your vendor. 

 

  1. Go to the Vendors menu, then select Pay Bills.
  2. Select the bills you want to pay from the table.
  3. From the Account drop-down, choose the Clearing account.
  4.  Click Pay Selected Bills.

Joesem Molat1.JPG

The balance total of the clearing account will be negative.

Joesem Molat1.JPG

Then, you can now make a received payment to your customer using the Clearing account.

 

  1. Go to the Customers menu and select Receive Payments.
  2. Select the customer from the Received From ▼dropdown.
  3. Click the checkbox next to the invoice you want to apply the payment to. 
  4. Choose the Clearing account in the Deposit To column.

Joesem Molat1.JPG

Then the clearing account will be zero by the end of the process.

Joesem Molat1.JPG

I've added these articles that can guide you to track a transaction in QuickBooks desktop:

 

 

Let me know if you have any other QuickBooks concerns. I'll be right here to help you!

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