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Level 1

IN: How do I record and track a cash advance to an employee for business expenses and adjust it later once he submits his expenses.

 
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QuickBooks Team

IN: How do I record and track a cash advance to an employee for business expenses and adjust it later once he submits his expenses.

Hi Shuvo Brahmachari,

Please follow below steps to record and track cash advance to employee.

1. Please create an 'salary' under expense and 'salary payable account' under liability.

2. Then create an expense and select 'Salary payable Account' to create a liability for cash advance payment. So that it will appear on your Balance Sheet

3. When you paid that expense please pass below journal entry.

Salary Expense A/C                                      Dr    xxxx

To Salary payable Account A/c                     Cr                    xxxx

Now, it expense will appear on Profit and Loss Account and Balance Sheet amount goes zero

Hope this helps.               

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Level 6

IN: How do I record and track a cash advance to an employee for business expenses and adjust it later once he submits his expenses.

You can make payment to Employee as Cash Advance for Business Expense and later credit Employee Account and Debit all the expenses incurred after receiving and submission of all the supporting documents.