Showing results for 
Search instead for 
Did you mean: 
Level 1

How to track and reimburse employee expenses made with personal funds?



Often, we have employees on jobsites who may need certain material immediately to complete the job.  They go and purchase the material themselves and we reimburse them on their next paycheck.

How do I go about properly recording these expenses by employees in QuickBooks, and reimbursing the employees on their next paycheck?  It would go like this:


  1. Employee purchases material on Monday for $20 and sends us receipt.
  2. Employee purchases material on Wednesday for $30 and sends us receipt.
  3. Employee gets paid the following week on Thursday, and needs to be paid their regular wage, plus the extra $50 reimbursement.


We use QuickBooks Online with Payroll.  Sometimes there are multiple employees that need to be reimbursed, so I'd like to be able to pull a report every week by name to see how much to reimburse to who.


Thank you.


1 Comment 1

How to track and reimburse employee expenses made with personal funds?

Thanks for joining the Community space, KN09.


I'll make sure that you can record your employees' reimbursement in QuickBooks Online(QBO).


There are two ways to do this. First, you can create a cheque or journal entry if you're using a third-party payroll.


Here's how to pay your employee now:


  1. Select + New.
  2. Click Cheque or Expense.
  3. In the Payee dropdown, find the name of your employee.
  4. In the Category dropdown, choose a liability account. If you don't have one yet, you can add a new account.
  5. Enter the other information.
  6. Once done, hit Save or Save and close.


Here's how if you want to pay your employee later:


  1. Click + New, then select Journal Entry.
  2. On the first line: select your liability account and enter the amount you owe your employee under the Credits column. Then click the Name dropdown and find the name of your employee.
  3. On the second line: choose the expense account that fits the purchase your employee made. Then, enter the amount of purchase under the Debits column.
  4. Hit Save and close.


After recording your Journal Entry, you can pay them using a cheque or expense.


Also, you can run transaction detail reports to know how much you still owe them.


Here's how:


  1. Go to Reports, then search for Transaction Detail by Account.
  2. Open the report, then click Customise at the top.
  3. In the General section, select the Report period dropdown and choose the range of your transaction.
  4. In the Rows/Columns section, click the Group By dropdown, then Employee.
  5. In the Filter section, select the Distribution Account dropdown, then choose the Employee Reimbursement account.
  6. Click the Employee dropdown, then choose your employee's name. Note: If you want the report to show what you owe all employees, leave this set to All.
  7. Hit Run report.


On the other hand, you can add the Reimbursement pay type if you want to include it on their paychecks.


Here's how:


  1. In the left navigation bar, click Employees.
  2. Under How much do you pay this employee? Click Add additional pay types if you haven't selected any other pay types, or click the pencil icon if you have.
  3. Select the Reimbursement checkbox.
  4. Click Done.


Once done, you can create paychecks using the newly created Reimbursement pay type. The Reimbursement field will appear in the compensation section of the Enter Employee Pay Details page.


For your reference, you can check these guides here:



In addition, I encourage seeking help from your accountant. They may add suggestions based on what's more suitable for your books and the business itself.


Reply to this post if you have further questions about reimbursement. The Community and I will always here to back you up. Stay safe!