An employee used the company credit card in 2022 for a personal trip and pays the amount back in 2023. How do I enter this transaction?

I'd be glad to help enter the transactions, @Sacca.

When you use a business account to pay for a personal expense, we can record this using the company's account and then reimburse the company afterwards.

Here's how:

1. Click + New and select Check or Expense.
2. Choose a Payee from the dropdown ▼ menu.
3. Select the Bank Account, Cash Account, or Credit Card you used to make the purchase.
4. In the Category details section, choose the dropdown menu ▼ to select the tax category that fits your need.
5. Enter the Amount of the purchase .
6. Click Save and close or Save and new.

Once done, you must reimburse the company for the amount of the purchase.

1. Choose + New and select Bank Deposit.
2. Choose the Account to add the reimbursement to, and select the Date.
3. Go to the Add funds to this deposit section. In the Received From field, enter the person who made the personal expense, then select the account.
4. Tip: Add the person as a customer if they aren't in your books already. Even if they're not a customer, this is the best option.
5. Click the Payment Method and enter the reimbursement amount.
6. Select Save and close or Save and new.

Additionally, you might want to visit this write-up: Mixing business and personal funds. This will provide you scenarios and links for the step-by-step process of handling personal funds in QuickBooks Online.

Keep me posted if you have questions about recording expense. I'll be sure to get back to you and help you whenever I can. Keep safe and have a good one.

Thanks for this detailed instruction. I forgot to wrote that we are a NPO based solely on donations, no sales or whatsoever, so I'm trying to avoid adding a customer. Nonetheless, I learned something from your reply. Thanks. 

Hi again, Rainflurry.

I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.

Keep safe and have a great rest of the day.

Hello: I like this solution but what will the IRS say about in an audit? It seems like it covers all the bases and I'd like to get help setting this up. Also does the company credit card look the same? Thanks!

Also what dates do you use? Do you use the actual dates of the expense? And when you reimburse do you use a date from the past or a current date?

Greetings, @cw48.
 
We recommend contacting the IRS to verify and ask their thoughts on the recommended approach for employees using the business account to cover personal expenses, including reimbursements. 
 
Additionally, we'd appreciate more specific details about the solution you're referring to and the steps you've already followed. This information will help us better understand your concerns and explore potential solutions or alternative approaches.
 
We are committed to assisting you and value your cooperation in this matter. Please don't hesitate to use the reply option at the bottom of this post to provide your response.

@cw48 

I believe the IRS would say this is considered an employer-employee loan.  If the amount is less than $10,000, is not used by the employee to purchase income-producing property, and its primary purpose is not tax avoidance, then I don't believe there needs to be imputed interest applied to the "loan". 

Follow the instructions in the solution post: record the amount(s) to an other current asset (OCA) account as of the date of the cc charge.  When the "loan" is paid back, deposit the funds as of the date received and assign the same OCA account to the deposit that was assigned to the cc charge(s).  

Hello: do I have to use the actual date of the charge??

Hello: the owner of the company gave me a "gift" of paying my real estate fees. He didn't want me to pay it back. But I feel that the way the IRS works I could possibly be looking at some trouble. I don't want anything bad to happen to us so I prefer to pay back the money.

I haven't done anything yet? The solution I was referring to was the solution offered by your colleague....

Hello: so how would I classify this as an employer to employee loan??

When I did this it went to the P&L as expenses. Then I applied payment and it stayed in expenses on the P&L with a negative amount?

Hello,

I am trying to follow these instructions but had some questions. The employee brought in a check to reimburse the organization for the expense on the credit card. The check is not deposited so I need to put it into my undeposited funds but can't do that through the make a deposit option. How should I enter the check?

Thank you for joining this thread and letting us know your concern about recording a reimbursement for a credit card, @AndreaMK.

When creating a bank deposit, you're right that you can't use undeposited funds to store the amount before depositing it to the actual bank account. Since the amount reimbursed by the employee isn't in your actual account yet, I recommend depositing it in a dummy or clearing a bank account before moving it to the operating account. 

If you don't have a clearing account yet, you can refer to this article for complete guidelines for creating one: Set up a clearing account.

Once done, you can refer to the steps below to deposit the transaction:

1. Click the + New icon and select Bank Deposit under the Other column.
2. In the Account dropdown, select the clearing account we recently created.
3. Enter the Date, and navigate to the Add funds to this deposit section.
4. Select the Employee in the Received From section, choose the proper Account, and enter the Amount of the transaction.
5. After that, click Save and Close.

At the time that the check has been deposited to the bank, we can edit the transaction created above and alter the account. Instead of posting it to the clearing account, we can change it to the actual bank account. Or, record a transfer between bank accounts to move the money.

If you're done maneuvering your transactions, you can consider categorizing your other transactions and reconciling them afterward to keep your records accurate and immediately spot any possible discrepancies in the account.

Have additional questions? Don't hesitate to post them to the Community to address them accordingly. We're available 24/7 to lend an extra hand to help you. Have a good one!