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Hi
Our team purchased all its members uniforms and tshirts using the team account. the parents have started to pay the team back directly. there was no additional charge and the team doesn't make any money from the transaction. the parents are just reimbursing the team. can you tell me how I should record the original purchase and how to record the money coming back in as reimbursement and not income? thank you
book the purchase and use the expense account you have for uniforms etc
deposit the repayments and use Other Income as the source account for the deposit
on the P&L, income is reduced by expense, so if the repayment is the same amount it will net to zero
thank you!
You can record your personal expenses paid using your business accounts or credit cards in QuickBooks Online (QBO), stuety. I'll gladly share more about this and guide you through the recording process below:
1. Go to +New and select Check or Expense.
2. Select a Payee from the dropdown ▼ menu. Choose the Bank Account, Cash Account, or Credit Card you used to make the purchase.
3. Choose the appropriate tax category by clicking on the dropdown menu ▼ in the Category details section.
4. Enter the amount of the purchase.
5. Once done, click Save and Close or Save and New.
You can read these resources to learn more about handling personal expenses in a business account: Pay for personal expenses from a business credit card or bank account in QuickBooks Online.
I'll be around if you need anything else with QuickBooks, especially with recording transactions. Take care and have a good one.
thank you for your response. It's not really a personal expense. the purchase was for team uniforms and the parent will reimburse the team. we do not uncharge for this service. it's just money in and money out. can you tell me how this purchase and reimbursement would be done? thanks
Hi there! Allow me to guide you through the process of handling this purchase and reimbursement in a seamless and accurate manner.
The first thing we need to do is to create a purchase transaction. Then, choose the appropriate expense account that aligns with team expenses or uniforms. This ensures accurate tracking of the expense.
After that, assign the expense to a Reimbursable Expense account. Then, record and deposit the payment for the team uniforms using the Other Income account.
An alternative approach to track the inflow and outflow of funds is by employing a Journal Entry. It is important to note that this method should be used with confidence or under the guidance of your accountant.
I'm also adding these articles for you to read and have a deeper understanding of how to manage expense transactions in QuickBooks:
If you require additional assistance with tracking your expenses, simply click the Reply button and leave a comment. I'll promptly respond to provide the necessary support. Wishing you a pleasant day!
Thanks for getting back here in the Community, stuety. I'm here to clarify a few things about recording reimbursement expenses in QuickBooks Online (QBO).
I've read the whole discussion in this thread and found out that you've mentioned that no income is involved with these transactions. That said, you can simply record expense and bank deposit transactions and use the same expense account for your uniforms and t-shirts.
Also, you don't need to create a reimbursable expense account if you have already added an expense account to track your uniforms and t-shirts. To guide you further, see the following screenshots for your visual reference:
For example, it will show these transactions on your Profit and Loss report like this:
Additionally, you can refer to this article to learn how to personalize your income and expense reports in QBO: Customize Reports in QuickBooks Online.
If you need further assistance on what specific accounts to use for tracking the expenses, I recommend seeking help from your accountant to ensure that your books are accurate. They'll also be able to provide more expert ways of dealing with this situation.
Keep me posted in the comments if you need further assistance recording your reimbursement transactions in QBO. I’ll get back to you as soon as I can. Have a great day.
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