How to account for a purchase on credit card with reimbursement

[Jannick Asmus]

Hi,

how to account for a payment of, say, a latte with credit card which is 
reimbursed by the company I am with. The credit card bill is charged to 
my personal bank account.

This question was brought up by Rayanag in the IRC last night - and I 
promised to give an answer after some sleep terribly needed. :-)


First a simplified version, further down there is a more professional 
version:


Simplified version:

- purchase on credit card (CC):
date: purchase
Dr Exp:Latte
Cr L:CC

- payment CC bill:
date: payment of bill/charge CC
Dr L:CC
Cr A:Bank

- claim on reimbursement:
date: payment of CC (*)
Dr A:Receivable (company)
Cr Exp:Latte

- reimbursement by company:
date: incoming payment
Dr A:Bank
Cr A:Receivable


(*) Note that this date could be questioned. I assumed that a receivable 
can be accounted for after I have been charged, i.e. my bank account is 
charged.


... and here the more professional version. It should make every 
accountant happy I suspect. ;) Using employee's bills in GnuCash togther 
with business features it can be easily realized in my opinion.

- purchase:
date: purchase
Dr Exp:Latte
Cr L:Employee's bills

- charge of employee's CC:
date: payment of bill/charge CC
Dr L:Employee's bills
Cr L:Employee's CC

- payment CC bill:
date: payment (**)
Dr L:CC
Cr A:Employee's bank account
Dr A:Receivable (company)
Cr L:Vendor (with debit balance)

- reimbursement by company:
date: incoming payment
Dr A:Bank
Cr A:Receivable
Dr L:Vendor
Cr Rev:Reimbursement


Note that there is no off-setting of expenses and revenues like in the 
simplified version.

(**) The note (*) from above should apply here, too.



Comments are encouraged and, of course, are welcomed.

-- 
Best wishes,
J.

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