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Issue employee advances

You can issue your employees an advance for customer costs (rather than reimbursing them later).

These instructions are long. If you want to print them, click Print in the Help window's icon bar.

To issue an employee advance

  1. Create a new "other current asset" account called Employee Advances (if you don't have one already).

    Leave the account's opening balance at zero.

  2. Create one "other current asset" subaccount for each employee for whom you expect to be issuing advance checks. For example:

    • If you will be issuing advances to Gail Hoffman, create an "other current asset" subaccount called "Gail."

    • In the New Account window, click the Subaccount of checkbox, and choose the Advances account as the parent account.

    • Leave the subaccount opening balance at zero.

  3. Go to the Banking menu and click Write Checks.

  4. In the Write Check window, write an advance check to the employee (not a paycheck). If you see a message about using the payroll feature to create a paycheck, click OK and ignore it for this type of check. In the detail area of the check, make these entries:

    • In the Account column, choose the subaccount you created for that employee's advances (for example, Advances:Gail).

    • In the Memo column, type a description of what the advance is for.

    • Do not make an entry in the Customer:Job column. (You don't assign a customer:job until the employee has spent the advance, and an expense actually occurs.)

    When you save the check, QuickBooks puts an increase transaction in the Advances:Gail account register.

  5. When the employee later turns in an expense report, enter each expense as a decrease in the employee's asset subaccount. Use a new transaction field to enter the expenses. For each expense transaction, make these entries:

    • Leave the Payee field blank.

    • In the Account field, assign the expense to the appropriate expense account (for example, Travel).

    • Enter the amount of the expense in the Decrease column. If you are assigning the amount to more than one expense, use the Splits option. The Splits option also allows you to enter the Customer:Job.

  6. (If you entered a single expense in step 5) Assign the expense to the appropriate customer:job.

    • Select the expense in the account register and click Edit Transaction on the register toolbar.

    • At the General Journal Entry window, enter the customer:job in the Name column on the line for the expense transaction.

    • Save the transaction.

      Save the transaction.

When you're ready to invoice the customer for expenses incurred by your employee, follow the procedure described in Tracking costs and reimbursements for employees, beginning with step 4.

If the employee spent more than the advance, you can pay the amount you owe by writing a QuickBooks check and entering the employee's "other current asset" subaccount in the detail area.

11/18/2017 1:09:17 PM
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