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pareshfairdeal
Level 1

How to add employee advances and track them for deduction? i also want to add petty cash for employee and then put the bills for customer when he submits Please help

 
1 Comment
LieraMarie_A
QuickBooks Team

How to add employee advances and track them for deduction? i also want to add petty cash for employee and then put the bills for customer when he submits Please help

Hi there, @pareshfairdeal.

 

You can create a journal entry to add employee advance. I'd recommend consulting an accountant on what specific accounts to use to record the transaction to ensure the accuracy of your books. If you don't have one, not to worry! You can visit the ProAdvisor site to find an accountant.

 

  1. Go to the + New button.
  2. Select Journal entry.
    Capture.PNG
  3. Fill in the needed details to create your journal entry.
  4. Click Save and close when done.

 

Here's an article you can read to learn about the basics in creating a journal entry: Create a journal entry in QuickBooks Online.

 

You can also check out our guide on recording payroll transactions manually.

 

To clarify, are you trying to bill an expense from the petty cash that your employee incurs on your customer's behalf? To set up a Petty Cash account, follow these steps below:

 

  1. Go to Settings ⚙ and select Chart of Accounts.
  2. Select New.
  3. From the Account Type drop-down▼, choose Cash and Cash equivalents.
  4. From the Detail Type drop-down▼, choose Cash on hand.
  5. Enter Petty Cash for the account name.
  6. The opening balance will be created when you move money from the checking account by writing a check or transferring funds. If you already have money to use for petty cash, enter the amount in the Balance field and choose the as of date.
  7. Select Save and Close.
     

For more info, refer to this article: Set up and use petty cash.
 

Then, to bill an expense your employee incurs on your customer's behalf, you can easily track them as a billable expense. First, let's turn on billable expense tracking.

 

  1. Go to Settings ⚙, then select Account and Settings.
  2. Go to the Expenses tab.
  3. From the Bills and expenses section, select Edit ✎.
    • Turn on the following:
      Show Items table on expense and purchase forms
      • Track expenses and items by the customer.
      • Make expenses and items billable.
  4. (Optional) Set up the following:
    • Markup rate
    • Billable expense tracking
  5. Bill payment terms.
  6. Select Save.

 

Once done, proceed to step 2 in this article: Enter billable expenses.

 

Please let me know should you need further assistance. I'm always here to help. Have a great day!