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Employee Expenses, Again
- Subject: Employee Expenses, Again
- From: Luke <..hidden..>
- Date: Fri, 8 Jan 2010 16:56:10 -0500 (EST)
To anyone who can advise.
I'm still trying to figure out Michael's workflow here. Here is what I
understand to be the case:
Vendors:
Widgets, Ltd.
Employee Name
Accounts:
Accounts Payable
Widget Acquisitions (expense) - shows up in lineitem section
Checking Account (Asset) - shows up in payments section
Employee Expensed (asset, although I think should be liability) - shows up
in payments section
Do you have another account?:
Employee Expenses (expense) - shows up in lineitem section
Workflow:
* AP transaction or vendor invoice for "Widgets, Ltd.".
* $10 worth of widgets, expensed against "Widget Acquisition" (through
inventory or AP lineitem).
* Invoice paid at the exact amount from "Employee Expensed"
(asset account that is really a liability).
* AP Transaction for "Employee Name" vendor.
* Expensed against what? Expense account? [*]
* Paid from "Checking Account".
[[*]] Here's my main problem. What expense account are you using on the
second AP Transaction? It can't be the liability/asset account ("Employee
Expensed"), because there is no way in the program that said account can
show up in the list of expense accounts. Have I missed something there?
So perhaps you have an expense account ("Employee Expenses"), which would
work there?
The math:
First Transaction:
Widget Acquisition: debit $10
Accounts Payable: credit $10
Employee Expensed: credit $10 (asset version)
Accounts payable: debit $10
Second Transaction:
Employee Expenses: debit $10
Accounts Payable: credit $10
Checking Account: credit $10
Accounts Payable: debit $10
You could theoretically use one "employee expense" account as the fake
checking and the expense accounts, but the program does not seem to allow
this.
At least, I can not figure out how to make it allow this.
As a result, my understanding is that you have an expense account of
"Employee Expenses", with a value of $10 at the end of the period. You
also have a supposed asset account, "Employee Expensed", with a negative
value of $10 at the end of the period.
That "asset" account would be a bit of a problem, wouldn't it?
Unless you've found some way to combine an asset and an expense account,
that I am just not seeing.
Or maybe I've got it all wrong.
Luke
On Thu, 31 Dec 2009, Michael Richardson wrote:
>
> >>>>> "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
>
>
> PART 2
> (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.
>
>