Employee Expenses, Again

[Luke <..hidden..>]

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.
> 
>