To record a purchase paid by an employee

Use this procedure only if an employee has made a purchase on behalf of the company and used personal funds to pay for it.

1. Create a liability account named, for example, Employee Purchases. (To add an account)



2. Enter the purchase for the vendor as you usually do. (To buy items from a vendor or To buy services from a vendor)



3. Create a vendor debit to pay for the purchase, that is to close it. To do this, use the procedure To create a vendor debit, but make one important change:

In step 5, enter the Employee Purchases account in the Account field instead of the account suggested in the procedure.

This debit purchase will credit (increase) the Employee Purchases account.

4. Apply the debit to the open purchase order. [To apply a vendor debit (Purchases Register)]



5. Pay the employee. To do this, use either the procedure To spend money (Bank Register) or To enter a withdrawal that isn't a check (Bank Register), but make one important change:

When you enter an account in the Account field in the bottom half of the window, enter the Employee Purchases account.

This transaction, will debit (decrease) and, in effect, zero out, the Employee Purchases account.