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A
April45
February 11, 2021
Question

Personal Charge on a company credit card

  • February 11, 2021
  • 1 reply
  • 139 views

What is the proper way to record a check given to the company to reimburse accidental use of the company credit card on a personal purchase?  The credit card has already been paid in full by the company.  If the employee gives us a check written to the company, how do I record it in quickbooks desktop?

Also,  Can you take the reimbursement out of the employees check if they want it done that way?

    1 reply

    MichelleBh
    MichelleBh
    Level 8
    February 11, 2021

    Hello, @April45.

     

    I'm here to contribute steps on how to record your reimbursement charge on a company credit card in QuickBooks Desktop (QBDT). 

     

    To record a business purchase paid for by personal funds, you'll have to record the expense first, then enter the partner or owner's reimbursement for that expenditure.

     

    Here's how: 

     

    1. Go to the Company menu, then click on Make General Journal Entries.
    2. Choose the appropriate Date in the field.
    3. On the first line, specify the appropriate expense Account for the purchase.
    4. Enter the amount of the purchase in the Debit column.
    5. On the second line, in the Account column, enter the Owner's equity or Partner equity. If you don't have it yet, click +Add to create a new one. 
    6. In the Credit column, type the amount of the purchase.
    7. Tap Save and close.

     

    After that, you can now record the reimbursement as a cheque/expense:

     

    1. Click on Banking at the top menu bar.
    2. Select Write Checks.
    3. Fill in the necessary information and select the Bank/Credit account you are reimbursing from. 
    4. Choose Partner's Equity or Owner's Equity under the Account column.
    5. Enter the amount of the reimbursement.
    6. Hit Save and close.

     

    Furthermore, I highly recommend getting in touch with a professional accountant to record the transactions respectively.

     

    To your second question, you'll need to deposit the check amount to be reported in the system. Let me show you how: 

     

    1. On the Homepage, select Make Deposits.
    2. Pick the account you want to put the deposit into from the Deposit to drop-down. 
    3. Complete the Received From, From Account, Amount. 
    4. Hit Save and close. 

     

    You can always view the deposit history by going to the Reports, then locate the Deposit Detail report, then click the Run icon. For more information, visit this article: Record and make bank deposits in QuickBooks Desktop.

     

    Lastly, it's also impossible by creating a deduction item for reimbursement to your employee. 

     

    I've also added articles about handling chart of accounts, 

     

     

    That's it. Don't hesitate to leave a message below if you have follow-up questions. I'm keen to assist. Take care!

    T
    Teesa66
    June 1, 2021

    @MichelleBh  Hi Michelle! I have the same problem, but in QuickBooks Online. Can you modify your instructions for QBO?

    Angelyn_T
    Angelyn_TModerator
    Moderator
    June 1, 2021

    The same steps work for QuickBooks Online (QBO), Teesa.

     

    I'm here to guide you with the details.

     

    First, record the business expense you paid for with a personal account.

     

    1. Click on Journal Entry from the +New icon.
    2. On the first line, select the expense account for the purchase.
    3. Enter the purchase amount in the Debits column and the Partner's or Owner's equity on the second line.
    4. Enter the same purchase amount in the Credits column.
    5. Select Save and close.

     

    Once you decide to reimburse the amount, you can either record a check or an expense transaction.

     

    Here's how:

     

    1. Go to the +New icon, then click on Check or Expense.
    2. Select a bank account to use to reimburse the personal funds.
    3. In the category column, select partner's equity or owner's equity.
    4. Enter the amount to reimburse.
    5. Hit on Save and close.

     

    I also recommend seeking assistance from a professional accountant to record the transactions accordingly.

     

    For more hints about the process, you can open these links:

     

     

    On the other hand, here's how you can record personal expenses made from a business account.

     

    Please feel free to get back to me here for any additional questions about personal and business expenses. I always have your back. Thanks for dropping in, and cheers for more success!

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