How to reimburse an employee purchase through payroll

Question

one of our truck drivers purchased wipers and paid cash I want to reimburse him the monies on his paycheck but I don't want it recorded as income I would like to have it go directly to the proper expense account if that is possible.

RandyW · Accepted Answer

Choose or create a G/L account that will be used specifically for payroll reimbursements. 
 Set up the income type as 'Reimbursement' and give it an appropriate name. 
 Pay the employee the total amount of the reimbursement with the next pay run. 
 Enter the first lines of the vendor payable invoice as usual (item, GST, etc.) and add a last line (without GST) with a negative dollar amount for the total of the reimbursement. 
 This results in a full record of the amount paid to the vendor, and for what, with the GST information. The reimbursement G/L account will normally balance to zero. 
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 Another way is to set up the employee as a vendor, and enter the purchase and payment as you would any other vendor. (make note of the GST number when entering the invoice.) 
 For a number of reasons, I prefer reimbursing through payroll.

Sage 50 Canada

How to reimburse an employee purchase through payroll

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