reimbursed employee expenses

reimbursed employee expenses

Post by Russ Pos » Sun, 26 Sep 1999 04:00:00



What's the best way to track this?

I frequently charge items on my American Express card and then I'm
remibursed by my employer for those charges.

I have all three accounts set up in Money (bank, amex, and expense
report.  My amex acct is set up to download transactions from American
Express.

So, let's say I purchase a plane ticket for $500 and the charge
appears on my amex account.

I then transfer the item to the expense account (same transaction,
right? - not a new line item).

So I'm now in the "red"  $500 to amex and $500 to the exp report.

I receive a check from my employer for $500 and pay my amex bill
(let's say it's $1500 to really complicate things).

I enter the $500 deposit into the checking account. Then I enter the
bill pay  as a transfer from my checking to my amex account. Do I also
enter a $500 transfer to amex (in effect, transferring a total of
$2000)?

Then transfer $500 from amex to the expense report?

Help, I'm no accountant!

Thanks

 
 
 

reimbursed employee expenses

Post by Steve Conklan, MV » Sun, 26 Sep 1999 04:00:00


Hi,

There are two basic ways to do this.  First way is recommended if you do it
a lot.

1)  Create an asset account called whatever you like, i.e., Accounts
Receivable (Reimbursable).  Now when you buy that $500 instead of making it
an expense, transfer the amount to your Accounts Receivable.  As you get
your reimbur*ts, deposit them to any account and transfer the amount
from your asset account (Accounts Receivable).  That makes you even.

The good part about this is that your net worth is not affected by a
transaction.  You spend $500 but have $500 coming.

2) If you don't get reimbur*ts very often, you can do it the way you
always have.  When you get your $500 reimbur*t, just deposit it and make
it an expense (a negative one obviously) to the same expense account you
used when you bought the ticket, e.g., My travel expenses.  (Make sure under
Tools, Options, Categories, you have unchecked the box to require the
correct category for all transactions or Money will not let you do this!)

This method is ok for once in a while reimbur*ts from unexpected
sources.  But if you deduct business expenses and get a lot of
reimbur*ts, IRS really likes you to keep the unreimbursables separate
from the reimbursables.

Hope this helps,

--
Steve Conklan, MVP - Money

**Feedback/Comments:
http://www.veryComputer.com/
**Microsoft Wish

**Microsoft Money Home Page:
http://www.veryComputer.com/
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http://www.veryComputer.com/
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http://www.veryComputer.com/
**Microsoft Support
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**Money Free Telephone Support
(425)454-2030


Quote:> What's the best way to track this?

> I frequently charge items on my American Express card and then I'm
> remibursed by my employer for those charges.

> I have all three accounts set up in Money (bank, amex, and expense
> report.  My amex acct is set up to download transactions from American
> Express.

> So, let's say I purchase a plane ticket for $500 and the charge
> appears on my amex account.

> I then transfer the item to the expense account (same transaction,
> right? - not a new line item).

> So I'm now in the "red"  $500 to amex and $500 to the exp report.

> I receive a check from my employer for $500 and pay my amex bill
> (let's say it's $1500 to really complicate things).

> I enter the $500 deposit into the checking account. Then I enter the
> bill pay  as a transfer from my checking to my amex account. Do I also
> enter a $500 transfer to amex (in effect, transferring a total of
> $2000)?

> Then transfer $500 from amex to the expense report?

> Help, I'm no accountant!

> Thanks


 
 
 

reimbursed employee expenses

Post by Rob Jete » Sun, 26 Sep 1999 04:00:00


Russ,

I use option #1 and it works pretty well. I usually get an expense check for
more than the direct reinbursables, because I get mileage on my personal
car. Therefore, every once in a while I put a credit to my
automobile:gasoline category to cover then extra amount in my expense check.
Also, make sure you Exclude From Budget the Expense account.

Rob



> Hi,

> There are two basic ways to do this.  First way is recommended if you do
it
> a lot.

> 1)  Create an asset account called whatever you like, i.e., Accounts
> Receivable (Reimbursable).  Now when you buy that $500 instead of making
it
> an expense, transfer the amount to your Accounts Receivable.  As you get
> your reimbur*ts, deposit them to any account and transfer the amount
> from your asset account (Accounts Receivable).  That makes you even.

> The good part about this is that your net worth is not affected by a
> transaction.  You spend $500 but have $500 coming.

> 2) If you don't get reimbur*ts very often, you can do it the way you
> always have.  When you get your $500 reimbur*t, just deposit it and
make
> it an expense (a negative one obviously) to the same expense account you
> used when you bought the ticket, e.g., My travel expenses.  (Make sure
under
> Tools, Options, Categories, you have unchecked the box to require the
> correct category for all transactions or Money will not let you do this!)

> This method is ok for once in a while reimbur*ts from unexpected
> sources.  But if you deduct business expenses and get a lot of
> reimbur*ts, IRS really likes you to keep the unreimbursables separate
> from the reimbursables.

> Hope this helps,

> --
> Steve Conklan, MVP - Money

> **Feedback/Comments:
> http://www.veryComputer.com/
> **Microsoft Wish

> **Microsoft Money Home Page:
> http://www.veryComputer.com/
> **MoneyCentral Home Page
> http://www.veryComputer.com/
> **Financial Institutions Supporting Money
> http://www.veryComputer.com/
> **Microsoft Support
> http://www.veryComputer.com/
> **Money Free Telephone Support
> (425)454-2030



> > What's the best way to track this?

> > I frequently charge items on my American Express card and then I'm
> > remibursed by my employer for those charges.

> > I have all three accounts set up in Money (bank, amex, and expense
> > report.  My amex acct is set up to download transactions from American
> > Express.

> > So, let's say I purchase a plane ticket for $500 and the charge
> > appears on my amex account.

> > I then transfer the item to the expense account (same transaction,
> > right? - not a new line item).

> > So I'm now in the "red"  $500 to amex and $500 to the exp report.

> > I receive a check from my employer for $500 and pay my amex bill
> > (let's say it's $1500 to really complicate things).

> > I enter the $500 deposit into the checking account. Then I enter the
> > bill pay  as a transfer from my checking to my amex account. Do I also
> > enter a $500 transfer to amex (in effect, transferring a total of
> > $2000)?

> > Then transfer $500 from amex to the expense report?

> > Help, I'm no accountant!

> > Thanks

 
 
 

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What dumb thing have I done to make these transactions appear this way?

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Thanks In Advance!

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704-502-7981
309-294-6056 (FAX)

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