How to record a reimbursement from our corporate office to a local office?

Novice Bookkeeper · ‎November 28, 2018

I work for a local division of a large company. We have a business bank account for our location that we utilize for small company expenses, such as business checks. Our corporate office reimburses us for those expenses via transfer to the bank account. I then need to post the transferred amount in my local QB company file. To be clear, our location has a standalone QB's company file, there is no connection to the corporate office's accounting software.

My question is: What type of account should I create in my company file to post this "income" to within QBD? When I go to record deposit, it wants a From Account. Just need some suggestions on what to create and post to.

I appreciate any help you can offer!

aj4fluentbiz · ‎November 28, 2018

You can choose one of two ways to post this deposit:

1. Create an income account in the chart of accounts called reimbursed expenses. This will show that although it is floating through the income side of the profit and loss statement, it is actually offsetting expenses on the expense side of the profit and loss statement.

OR

2. The deposit can be broken down by allocating each expense that is being reimbursed to the actual expense account that was used when paying for the expense initially. Thus bring the net effect of the expense incurred by your local company to zero (debited expense when the expense was initially paid and credited expense when it was reimbursed by corporate office

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aj4fluentbiz · ‎November 28, 2018

You can choose one of two ways to post this deposit:

1. Create an income account in the chart of accounts called reimbursed expenses. This will show that although it is floating through the income side of the profit and loss statement, it is actually offsetting expenses on the expense side of the profit and loss statement.

OR

2. The deposit can be broken down by allocating each expense that is being reimbursed to the actual expense account that was used when paying for the expense initially. Thus bring the net effect of the expense incurred by your local company to zero (debited expense when the expense was initially paid and credited expense when it was reimbursed by corporate office

Novice Bookkeeper · ‎December 01, 2018

Thank you very much! That helps a lot!

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How to record a reimbursement from our corporate office to a local office?