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Level 1

Non-profit corp: company cardholder accidentally used card for personal expenses, then reimbursed company with a check. How do I record the debit and the check deposit?

Our non-profit (church) has a checking account, with debit cards for the few individuals who purchase items for the church's expenses.  One of these individuals accidentally pulled out the corporate debit card when paying for lunch and the debit showed up on our bank statement.  She then wrote a personal check and gave it to us for reimbursement of the funds.  This has happened a couple of times with different people, and it has always been confusing how to record it.

There seem to be two major parts to this:

1) The expense being debited: I think I used 'bank fees' as the expense category previously to have a placeholder, since that's how I included a 'bank fees charged to donors' when a check was returned NSF.  I want to make sure this doesn't affect our P&L since the expense wasn't actually part of our budget or expenditures.  Is there any way to tie the reimbursement check back to the original expense/bill?

2) The reimbursement check being invoiced, received, and deposited. We don't want the reimbursement check to show up under the charitable contributions statement we provide for donations, since this individual is also a donor - we could insert an additional donor identity for this item but it seems counterproductive.  

Solved
Best answer October 19, 2018

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Level 15

Non-profit corp: company cardholder accidentally used card for personal expenses, then reimbursed company with a check. How do I record the debit and the check deposit?

Create a current asset account called due from [name]

on the debit card or credit card charge entry, for the personal amount use that current asset account

when you deposit the check from the individual, use that current asset account as the source (from) account for the deposit.

the current asset account is now zero, the bank and CC statements match the entries in QB


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2 Comments 2
Highlighted
Level 15

Non-profit corp: company cardholder accidentally used card for personal expenses, then reimbursed company with a check. How do I record the debit and the check deposit?

Create a current asset account called due from [name]

on the debit card or credit card charge entry, for the personal amount use that current asset account

when you deposit the check from the individual, use that current asset account as the source (from) account for the deposit.

the current asset account is now zero, the bank and CC statements match the entries in QB


View solution in original post

Highlighted
Level 1

Non-profit corp: company cardholder accidentally used card for personal expenses, then reimbursed company with a check. How do I record the debit and the check deposit?

Can you please explain the debit card charge entry?

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