cancel
Showing results for 
Search instead for 
Did you mean: 
cwjf
Level 1

If a 2019 reimbursable exp. (employee personal charge on company credit card) was not repaid until 2020 how is receipt of the repayment recorded (Accrual method)?

I recorded a credit card charge as a reimbursable expense in 2019 because it was a personal charge for an employee who needed to repay it. The repayment was not received until 2020 and I recorded it was income to the same reimbursable account. This is how we handle all expenses that we incur that we will be reimbursed for by an agency or business partner. We are a non profit and often time churches will pick up our travel expenses but we do not invoice for them. The reimbursable account now shows a credit balance in the amount of the repayment received in 2020 because the offsetting expense was in 2019. Should the receipt of payment been recorded differently? Is there a Journal entry to be done to create the offsetting amount in the reimbursable account or do I just have to live with a credit balance in that account until the end of the year?
1 Comment 1
CharleneMaeF
QuickBooks Team

If a 2019 reimbursable exp. (employee personal charge on company credit card) was not repaid until 2020 how is receipt of the repayment recorded (Accrual method)?

Hello there, @cwjf.

 

Welcome to the Community space.

 

If the repayment of the employee was deposited to the credit card, then you can create a Credit Card Credit dated 2020 and use the same Expense Account that was created when you recorded the employee's credit card charge from 2019.

 

Here's how:

  1. Go to the + New button.
  2. Click the Credit Card Credit.
  3. Make sure to select the same Expense account.
  4. Enter the date.
  5. Provide the other information in the fields.
  6. Click Save and Close.

 

However, if the payment was reimbursed using the payroll, you can create a journal entry to offset the employee's credit card charge recorded from 2019 with the date of 2020.

 

You may follow the steps below in creating a journal entry.

  1. Select + New.
  2. Select Journal Entry.
  3. Fill out the fields to create your journal entry.
  4. Select  Save and close.

 

To learn more about bank activities, reports, invoicing, account management, visit our QuickBooks Online Help article.

 

If you have any further questions, please don't hesitate to reach back to us. Have a great day!

Need to get in touch?

Contact us