Reimbursing employee expenses

Cordie Registered Posts: 12 New contributor 🐸

I am doing a little part time work for a company. They have a couple of employees that buy things for the company using their own credit card and then the company pays a cheque to reimburse them.

What is the best way to enter these into the accounts. It will often be a number of invoices say from B&Q and other places and there will be VAT implications. How would I enter the bills on SAGE to reflect this.

I think currently they have the employee set up as a supplier, then enter the bills against their name with the shop details in the ref and then put the cheque against the employee (as supplier)



  • thoms04
    thoms04 Registered Posts: 36 Regular contributor ⭐

    That system is very similar to how we currently process ours. I guess if the employees are providing goods for the office and awaiting payment its no different to any other supplier/creditor. Its also very easy and clear to analyse when needed.

    Did you have a different process in mind?
  • Cordie
    Cordie Registered Posts: 12 New contributor 🐸
    Well I thought when I posted the cheque paid I could itemise the things bought and put the shop in the detail as well.

    We would like eventually to have expenses sheets maybe

    This would be okay wouldn't it?, as if I post a cheque from the bank you can analyse the VAT out and it saves doing two entries - ie bill and then paying it off
  • pernickety
    pernickety Registered Posts: 47 Regular contributor ⭐
    I would create an expense sheet(per employee) and enter it as if it was a purchase invoice in to the employees' supplier account that you mention is in the purchase ledger already. Then go to supplier payment and pay off the creditor(the employee) with the reimbursed amount, as if a normal purchase invoice. You can reference all of the items on the expense sheet and then when you input in the supplier invoice window post to the various nominal expense codes. Use the "ref" field to reference back to the supplier invoice (or expense sheet, maybe with a number or whatever); the details field to record whatever you wish and obviously the claim back of VAT accordingly too, posted as you would any VAT element as normal (remebering to calculate net if you need to):001_smile:.
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