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Re: Handling Employee Expenses

>>>>> "Luke" == Luke  <..hidden..> writes:
    Luke> On Tue, 15 Dec 2009, Michael Richardson wrote:

    >> I created a banking account, "Michael Richardson Expenses", and I
    >> pay Company B from this account.  It goes negative, so I create
    >> an AP Transaction that then fills this account, and issue a
    >> checque to "Michael Richardson"

    Luke> Wouldn't that result in it going even more negative?
    Luke> Basically, you're paying two vendors out of the same account.

It looks something like:

PART 1                                       
(AP transaction against, say, "Grand and Toy", attach receipt to printout)    
"Office Supplies" (expense account)              +$10     
"Accounts Payable"                                         +$10

"Michael Richardson expense" (asset account)     -$10
"Accounts Payable"                                         -$10          

(AP transaction against, vendor "Michael Expenses")
"Michael Richardson expense"                     +$10
"Accounts Payable"                                         +$10

"Checquing Account"                              -$10
"Accounts Payable"                                         -$10

Of course, I do not do PART 2 every time, but rather only when the
amount is enough to bother.

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