Employee Reimbursement Liabilities

ITGuy · ‎January 03, 2025

An employee made a purchase with personal funds and submitted for reimbursement.

I followed the directions here: https://quickbooks.intuit.com/learn-support/en-ca/help-article/payment-methods/reimburse-employee-qu...

After creating the journal entry, the "Employee Expense Reimbursements Payable" liability account shows a corresponding positive balance.

I then added the reimbursement to the next paycheque (managed through QBO payroll), as specified in those directions, and the employee was paid.

However, the liabilities account is still showing the positive balance. It seems like there was no record created automatically when I paid the reimbursement to the employee. What additional step do I need to do to zero out the liabilities account now that the reimbursement has been paid?

Trish_T · ‎January 03, 2025

Hi ITGuy,

Thanks for reaching out to us here. I appreciate the steps you've taken to reimburse your employee, in QuickBooks Online. However, to ensure your books remain balanced, I encourage you to contact our Customer Care team outside of this forum. With your consent, they can connect with you virtually, and ensure a positive outcome on your books.

Please feel free to reach out again, if you have other questions. We would be glad to assist!

ITGuy · ‎January 03, 2025

I called the customer care team, and the agent had no idea what to do. She tried to tell me to create a Journal Entry to debit the Employee Reimbursements Payable (liability) account to balance it to zero, and credit that amount to the Opening Balance Equity account. That is absurd; why would an employee reimbursement be shifted to an Equity account???

I think it's much more likely I'll get a knowledgaeble answer here from the community than from your support centre. The quality of your official support is absolutely terrible.

Employee Reimbursement Liabilities

Employee Reimbursement Liabilities

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