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Highlighted
Level 2

Journal Entry Help

I am new to journal entries.  I pay bills for my clients and get reimbursed.  Sometimes I get reimbursed by check, which I deposit in the bank.  To show how my expenses equal the reimbursed amount, do I create a journal entry showing my expense as a debit and the check that I deposit as a credit? Do I charge the credit to Cash?  When I've tried that, Cash is shown as a separate account. Sometimes I am reimbursed in cash.  I put in the expense as a debit as above, but when I put Cash as the reimbursement credit, it also goes to a different cash account.  Is that how it should be?  

 

 

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Best answer August 01, 2020

Best Answers
Highlighted
Level 15

Journal Entry Help

What you pay out is an expense.  What you are paid is income.  On the P&L income is reduced by expense.

so for a pay out

expense account, debit, $$
bank account, credit, $$

 

when you are paid back

bank account, debit, $$

income account, credit, $$

 

Journal entries should be the exception when using QB, they often do not work as you think they should, and  when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used.    Journal entries also bypass accrual/cash reporting, and will not show on many reports.

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1 Comment
Highlighted
Level 15

Journal Entry Help

What you pay out is an expense.  What you are paid is income.  On the P&L income is reduced by expense.

so for a pay out

expense account, debit, $$
bank account, credit, $$

 

when you are paid back

bank account, debit, $$

income account, credit, $$

 

Journal entries should be the exception when using QB, they often do not work as you think they should, and  when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used.    Journal entries also bypass accrual/cash reporting, and will not show on many reports.

View solution in original post

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