I have created a new income in the Setup>Payroll>Incomes by adding REIMBURSEMENT with the Unit of Measure = Period and NO Taxes.

In Setup>Payroll>Linked Accounts>Incomes, I have added REIMBURSEMENT (5740 Miscellaneous)

The employee paid cash/interact for supplies that normally would have been paid by the companies mastercard. To reimbursement the employee, I created the above.

In the payroll module, I added the invoice of the supplies to the 5740 Miscellaneous account (103.66 incl GST).

The next week for payroll, I entered the 103.66 in reimbursement for the employee.

The problem is that in the payables module, that amount is still owing and was not marked paid. If I bring the invoice up and mark up as cash, that amount pays for the invoice but the bank account in sage states 103.66 less as well as 103.66 less again because of the reimbursement. Technically, the account has been debited twice because it was included in the paycheque of the employee.

How do I correct this? The payroll was 1 month ago and not sure how to rectify this situation.

Thanks for any help in this matter.