How do I post expense reimbursements?


S

Scott Bickman

I am the treasurer of a flying club. We are a non-for-profit
corporation with 22 members. We own 2 airplanes. We bill our members
monthly dues as well as for their flight time.

One of our members has a balance due of $250. He wrote a personal
check in the amount of $300 to pay an expense for the club. Instead of
reimbursing the member directly, he wants this to be a credit on his
account. How do I enter this in QuickBooks so that the member's
balance is now a credit of $50 and so that the $300 is allocated to
the proper expense account (in this case, postage for the club's
accounting records)?
 
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Other users may suggest a journal entry but I prefer the following, though it's slightly more complicated:

- Create a new "bank" account. I would call it something like "Clearing and Transfer".
- Record payment of the $300 expense as if it were paid by a check from the new Clearing account, including a memo explaining that it was paid by the member.
- Record receipt of payment of $300 to the member's account, recording it as if deposited to the Clearing account. Apply $250 to his outstanding balance and leave the remainder as an unapplied credit to apply to future invoices.
 
S

Scott Bickman

Okay, great idea and it works as long as the member wants to keep a
credit balance in his account or if his payment does not exceed his
balance.

What if the member wants me to send him a check? How can I turn his
negative (credit) balance into a check?
 
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The same way you refund a credit balance to any customer, as described in Help:

- Write a check, select Account = Accounts Receivable on the Expenses tab and select the member's name in the Name column.

- Open Receive Payments. Select the member's name. Select the check, which will appear as though it were an invoice. (Note: if you select the check by clicking the left-most column you will be warned that "You cannot apply an amount greater than....etc."; click OK and ignore. You can avoid this warning by clicking anywhere else on the check line.) Click Set Credits and apply the credit to the check.
 

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